low saving in pakistan
TRANSCRIPT
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MACRO ECONOMICS
SIDRA ZAIDI
SHUMAILA
LUBNA
BUSHRA
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LOW SAVING IN
PAKISTAN
Causes, impacts and remedial
measurements
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SAVING
The amount left over when the cost of
a person’s consumer expenditure is
subtracted from the amount of disposable
income that he or she earns in a given
period of time
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SAVING IN PAKISTAN
During the last two decades, the saving
rate of Pakistan has remained very low in
both terms absolute and relative to other
countries at similar stages of development.
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Because of some factors financial savings
affected negatively
for example
lavishly
spending on
consumption
increased
availability of
new products
a production
structure that
has emphasized
consumer goods
production etc.
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NATIONAL SAVINGS CONSIST OF THREE
COMPONENTS
Corporate
household
government savings
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HOUSEHOLD SECTOR
. During the last three decades in Pakistan the
household sector has accounted for about 83
percent of the total savings.
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CAUSES OF LOW SAVING IN
PAKISTAN
Vicious circle of poverty
Unemployment
Lack of foreign investment
Use of backward technology
Inflation
Backward infrastructure
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IMPACTS OF LOW
SAVING IN PAKISTAN
Income
Wealth
dependency ratio
Employment and unemployment
Various categories of education
macroeconomic stability.
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REMEDIAL MEASURES:
A transitory change
Government’s current expenditures
GDP growth
Provide basic nutrition and health facilities
New technologies and new training centers
Free education and scholarships
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CONCLUSION
Domestic savings
Economic growth
. Pakistan’s Per capita
use of modern technologies and control on
population.
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