PATTERN OF DEVELOPMENT AND SUSTAINABLE ECONOMIC GROWTH IN PAKISTAN: A DESCRIPTIVE ANALYSIS

Abstract

Economic growth and development in Pakistan has always been erratic. This study attempts to examine possible causes and ramifications arising as a result. Major macroeconomic, social and environmental variables are examined using data from 1950 to 2013 and policy implications are chalked out. Literature shows that low savings and investment rates, budget deficit, institutional shortcomings, lack of human development and environmental degradation remains some of the major issues faced by the country. These factors together along with bad governance are considered as the major cause of unsustainable development. The descriptive analysis of the growth rates and averages of selected variables is conducted to study the pattern of economic growth and development. The study reveals that Pakistan has experienced unsustainable economic growth since its birth. Savings and investment has remained low and there is persistence of fiscal deficit. Furthermore trade deficit worsens the balance of payment situation. Investment in infrastructure, especially social infrastructure is inadequate and, hence human development is neglected. In addition, there is environmental degradation. Thus there is need for policies that encompass economic, social and environmental sectors. In other words policies should aim at achieving sustainable development.