Abstract:
Purpose: The main purpose of this study is to find out the relationship between macroeconomic
variables and non-performing loans of Pakistan since 1999. I want to watch the trend
of data, its relationship with economic cycle and also influence ofthese variables
Research Techniques: Research paper target on the Pakistan’s economy on the data from
1999-2014.1 have used the correlation coefficient and multiple regression analysis that helps
us to conclude the data
Findings: After applying research techniques results showed that the real GDP has significant
negative relationship with non-performing loans. On the other hand lending interest rate
and exchange rate has significant positive impact on NPLs. unemployment has insignificant
weak and negative relationship in the result of con-elation coefficient but in regression analysis
it becomes significant and positive to the loan defaults.
