Abstract:
rrpose: The purpose ofthe study is to examine the role ofKarachi Stock Exchange (KSE)
in making the positive image ofPakistan’s economy. After facing my economic downfall, now
it’s a revival ofPakistan’s economy with respect to positive developments in different sectors
ofthe economy. This changing scenario created a need to do a research, that what
developments took place in KSE and Pakistan’s economy.
S-'inpie: Time series data from 2000-2015 data has used in this study. There are four
independent variables foreign direct investment (FDI), private investment (PI), market
capitalization (MC), market index (MI) and one dependent variable Gross domestic Product
(GDP) ofthe study. For analysis Regression method is used.
Findings: The study finds a positive relationship of(GDP) with (FDI), (PI), (MC), while a
negative relationship between GDP and (MI). GDP is one ofthe important benchmark of
economic growth. Regression analysis showed that $1 change in FDI, MC, MI, and PI will
change the GDP by $0,527, $0,552, $ 0.558, $ 0.518 respectively.
Practical Implications: Though since 2005 Pakistan’s GDP’s average increment is 5%
with good performance ofKSE, still there is so much to do to change it further. To give a new
life to economic growth, it’s an ultimate requirement to encourage investors in Pakistan. For
this, it’s necessary to change Pakistan’s image from corrupt terrorist place to transparent and
secure place to invest. The study will create a better understanding regarding the long-run
relationship of economic growth and role ofKSE.
