Abstract:
The objective of this study is to examine the impact of the inflating oil prices prevailing in the market on the developing economy of Pakistan. Oil prices have become big news. Prices have risen rapidly in the past years. The research, that whether the inflating prices of oil have a positive or negative impact on the economy of developing or underdeveloped countries, has been going on globally for a while now. However, there is still doubt as to whether rising oil prices are the only variable which affects the economy directly. The objective of the study based on the literature review, is to evaluate whether inflating prices have an impact on the economy or not. The data was collected through secondary sources i.e. through the websites of the respective Ministries and oil Regulatory Authorities operating in Pakistan. Data from the Economic Survey of Pakistan and Federal Board of Statistics was also utilized. From the study we conclude that the economy of Pakistan is energy dependent and as oil makes up almost 80% of the energy consumption we can say that oil is necessary component in production and manufacturing so a sizable impact is noticed on the economy but on a few variables not all.
