Impact of Private and public investments on the Economic growth in Pakistan

Abstract

Capabilities that provide the social economical actions which helps to grow up to economic growth over a long term and protect the local market called “public investments”. It is also, important to know that the public investments have an important influence on economy of every country; either, developing or developed. One side of review of literature suggested a positive thinking on public investments and concludes that public investments are more efficient then private investment on the growth of economy. On the other side, some literature reviews indicate that the private investment is more efficient then public investment. After the independence the local markets of Pakistan shows a very significant improvement because of public investment. The average GPD of Pakistan was recorded 5.7% from 1960 to 1999. This was greater than the average GDP of the world. All time highest GDP of Pakistan was recorded 10.3% in 1954 and lowest was recorded -1.8 in 1952. In the start of 21th century the government of Pakistan offered and promoted to local and international investors and also made significance policies for private and public investors which helped to improve in gross domestic production. From 2004 to 2005 the GDP was recorded about 7.8% and government policies also make 30% improvement in private investment in 2005 which was (852424) in million as well as the national debt has fallen to 54% of Gross domestic product (Tradingeconomics, 2012). On that time, the Masharaf's government also offered public enterprises, amendment in private and public sector, international trade policies and decrease tax duties and reform in banking sector. Public investment is 10% less significant as compare to private investment.