Abstract
Now a days us _ pakistan relation ship is huge debate . so we discuss foreign assist influence
financial progress of pakistan, .to check the GDP progress of pakistan we use financial indictor .
the sample consist of date from year 1960 to 2015 . percentage change in real GDP IS the
dependent variable where independent variable is external assists
When we examine this the result is positive means external assists have positive influence on
pakistan economy so we should rise the external assists for balance of payment
Introduction
External assist are those funds which are give by the external nations to the victim nation these
assets are not repayable this funds are give to those country which become the victims of flood
, drought & earth quick voice versa
Our state pakistan, is very poor state & our agricultural & industrial sector is not advanced as
compare developed nations . due to this income level is very low our valid also low ,so venture
remain less in the state when a nation income level is low their tax structure is also weak due to
low income so the GOVT earning is less in this situation the under advanced nations have always
face the deficit balance of payment plus saving asset external assist help these nations to remove
these deficits & fulfill the needs & wants of their nations .these external assist have progressive
result on the Less develop nations a lot of group & countries have give fund or assist to pakistan
the major part of the external assist derives from the united states . pakistan use these fund in
the nation to remove terrorism or use in terrorism action . now in 2018 america has stopped their
assist to pakistan in 2015 pakistan get $649.1 million in assist for education to improve & provide
standard of education to their citizens . this is the highest assist so far . these assist increased
$586 million and 2015 $649 million this report also said that in southern asia pakistan have
receive the most external aid & indostan is at the second position who receive $589 million in
2015 major part of assist were used in basic education . $372 million or 57.26 percent were used
in basic education . from year 2002 to 2016 congress approved $8.638 billion .in 2009 the Kerry
luger bill passed education in pakistan had developed $1.5 billion annually assistance to pakistan
. according to ( pakistan financial survey 2010) per capita income of pakistan is less then $1000.1
, external debt is $58.2 billions unemployment ratio is 8% & inflation is 14.5% hence for the
advance of the nation external assist is good . so the cut down their non development
expenditure increasing the tax tatio to fulfill it,s spending
External assist is all financial & military assist which are give in the form of grants to the nation
the newspaper explain the correlation b/w external assist & GDP progress . the topic was very
vast our paper just focus on real GDP as helpless variable while all foreign assist are independent
variable . then examine their effects on real GDP .
Objectives
Research paper have various objectives such as
(1) To search how much pakistan is dependence on foreign assist
(2) To see how much external assist result the economy of pakistan
(3) To search weather it have helpful or harmful effect on pakistan economy
Chapter #2
Literature Review
External Aid , Economic Development & Venture
Burnside & Dollar (2000):- In 2000 British Improvement for Global Expansion,
Terminated Abject in the Discover of Burnside & Dollar (Burnside Et .Al. 2000) that
Development Coordination Can Distribute To Poverty Elimination at Countries Pursing Attent
Complete Policies These Two Economist Assert These Foreign Aid Had a Genius Impingement
At Growth in Under-Developed Nation with Bright Fiscal, Trade and Monetary Policies. These
Macroeconomic Predication According Trade and Familial Finances Fund Were Also Conveyed By
Configuration Structure and Eradicate Encounter
James Wolfensohn (2001):- James Wolfensohn The Chairman Of World Bank In 2001 Said That
“We Have Knowledge, Worst Plan And, Fragile Administration Will Construct, Assist, Infection
Damaged.
We State Institutions:” The Enormous Misunderstand About Foreign Assist That We Transfer
Cash Abroad .We Do Not Foreign Aid Agree Of Use Apparatus Substances , Expert Service And
Foods All
Facilitated For Particular Enhances Of The Adventure Which We Ourselves
Reconsideration And Accept Ninety Three Percent (93% )Of assists (Agency For Global Progress
Funds Are Invest Directly In The United States To Payment For These Items
World Bank Report 2002 The World Bank Facilitated Existential Evidence In Which External Aid
To A Nation Was Related To Enormous Levels Of Venture , Which In Turn Led To Enormous
Financial Growing Rate , In The Appearance Of Complete Plan Over The Last Three Years (World
Bank Statistics On Nations ,Pakistan 2000-2012) .
One Can Sight About The Winner Stories Opposites The Failures But The Information Highlight
That In More Point In Then Not Selective External Aid Has Coordinate Raise Per Capita Income &
Decrease Child Death Rate In Emerging Nations , (Easterly 2003).
Selective Foreign Aid , Which Is A Moderately Fresh Rule For Distributing Foreign Aid In Under
Developed Nations , Concentrates On The Direction Of assists That Can Burn More Financial
Progress ,As A Concluded Supporter Nations & Foundations Adopt On Situations Receiving
External Aid Before The Assist Is Reimburse . These Austerity Estimation In Involve
Macroeconomic Stability (Low Budget Deficits and
Inflation) Noninterference with Market
Costing Private of State Adopt Business and Disclosed To International Trade (Easterly 2003).
The Us United States Has Been One Of The Master Contributors To Global Financial Associations
( Ibis) , Such As The If & World Bank , However , It Has The Decrease Aid To Gdp Ratio Of Any
Wealthier State . (Easterly 2003), As A Concluded In Before 2002 At The Inter –America
Enhancement Bank , The Chairman Of The United States Us Called For A Fresh Compact For
Worldwide Development Described By Latest Accountability For Both Wealthier And Poor
Countries Equally . Massive Competition From Enhanced Countries Must Be Related To Massive
Responsibility From Underdeveloped States This Negotiate Coordinated To the Establishment of
the Millennium Compete Account to Management $ 5 Billion in External Aid to Developing
Countries, (The Us White House). The Assistors Have Utilized Fund Estimation As A Strong Parts
Of Monetary Accountability. After Resisting To Debts Advocates Promoter Massive. Ibis Have Set
Watch-Dog Groups Outside the Expenditure of Financial Supporter to Progressing nations. More
Victim by Equipment Ruler Accountability.
Chenery & Strout (1966):-They Terminated On The Root Of Existential Signal From DC, S, That
External Investment Has A Brilliant Victim On The Financial Progress
Leff and Griffin (1969-1970) Leff (1969) And Griffin (1970) Have Analyses Its Bad Impact On
Production. They Argued That The External Assist Could Advantage Victim Replacement The
Home Saving So The Prose On Productive, Profits Of External assist Show Both Good As Well As
Bad Profits .
Hansen and Tarp (2000):- They Move A Recession Under Develop Among Assist & the Production.
It Is Display That Aid Raises The Production Rate & This Concluded Is Not Dependent On The
Utilized These Budget In A Wisely And Productive Modes.
G. Moheyuddin (2003):- Result of External assist on Financial Enhancement in Pakistan (19602002) By: G Moheyuddin Mervell Plan. They Are However Reduction Reciprocate To Assist And
The Evaluation Returns Of Aid Is Massively Fine To The Choice Of Evaluator & The Set Control
Variables . When Venture & Human Income Are Controlled For, No Good Result Of Aid Is Detect.
Yet, Assist Promotes To Influence On Production Via, Venture .
Shabbier and Mehmood (1992) They Terminated That The Assist Has Promoted The Rate Of
Invention Of Gdp. They Also Discover The Bad Influence Of External Investment Are Nation
Savings. He Similarly Detected That Nation Is Likewise Caught In Liability Issues Due To
Macroeconomics Miss Administration, Miss Utilization of Assist and Incorrect Plan
Hasan and Malik (1992) They Estimated That the Foci Result To Refuse National Savings in
Pakistan Duration of 1959-1960 to 1987-1988
Composition and types of aid
Following are the types of external aid
1 program aid : those external aid which are granted for a development program is called
program aid. these are given for long time period
2 project aid : these kind of aid are given to the developing nations for specific project like
construction of dames and other projects
3 non project aid : those aid which are not given for a specific project . these are given in the
following forms
i.
ii.
iii.
Food aid : those aid which consist of food items like rice, wheat etc.
Non food commodity aid : raw material , tools and equipment etc are known as
a non food commodity aid
Relief aid : these aid are given for floods , drought and earth quick .pakistan get this
relief afghan refugees
Procedure of external assist – nations & administrations
Enormous process of external economic coordinator to Pakistan has been the group nonassociation and Islamic states.
Organization states
Among these the assist to Pakistan organization articulated in 1960 , now recalled as “ pakistan
enhancement conferences stays the biggest process of economic cooperation to pakistan by
facilitating 84% percent of the total allegiance of this 46% present was on bilateral and 38%
present on multilateral ground . the participate of organization process in total allegiance was
prospective to help from 53.22% in 2007-2008 to 59.99% present 2009-2010 organization states
are japan , the USA , Britain , Germany , Canada , Belgium ,france , Holland , Norway , Sweden
and an organization are world bank , Asian development bank , international development
association ( IDA ) and international finance coordination .
Non-organization states :The component of non- organization facilitated 8% percent assist . nonorganization nations are Australia , Austria , china , Denmark , Finland ,Romania ,Switzerland ,
former soviet union ,Czechoslovakia and south Korea .
Islamic states :Islamic states facilitated 5% percent to total foreign profit coordinator . the
participate of relief cooperation for afghan migration was 3% percent . among Islamic states and
administration facilitating assist to pakistan are UAE , Kuwait , Saudi Arabia , Qatar ,Libya
,Malaysia , Oman , turkey , Islamic development bank (IDB) & OPCE budget .
Current & patterns external assist in pakistan
1 Liaquat ali khan ;- three era in 1950 the denomination of pakistan disapproved the aimed
America coordinator . the assembly also separated in the same dated done the question of
promoting to world for loam .finally it is the impact of Chaudhry Mohammad Ali which agreed
the opinion in the supporter of taking assist and loans . the common wealth pledged through the
Colombo policy was how aver accepted . ( Hassan 1999) accordingly first time , pakistan accepted
common assist under the Colombo plan in 1950s
2 General ayub khan ;-during is Government in sixties , there should be a enormous production
rate ( at least twin of the masses making rate )in pakistan masses manufacture degree was about
3% percent . thus the manufacture of 6% percent was assumed as a target for the fast economic
enhancement . and recoding to the Harrod-Domar production structure to get the target of 6%
percent production rate the saving investment must be same the 18-20% percent to achieve this
position administration promoted for foreign assist .
3 zulfiqar ALI Bhutto;- in 1970s , after the separation of state his administration promoted an
initiating the nuclear agenda of the nation. This angered the western association like USA . this
depreciated the process of western assist to nation . but era is period same brotherly Islamic
states approach to support pakistan the exterminate that in 1973 achieved a equilibration
finance for first time . USA external assist to pakistan (1980-2002) seeing the effect composed
for is inquiry since 1980 to 2002 , 5 enormous steps of economic alter can be composed in
Pakistani economy .
Russian – afghan battle (1980-1989)Is this step represents the battle conflict by the afghan
warrior (mujahideen) detected by a pakistan ISI and the US CIA ,opposite the Russian incursion
of Afghanistan . during this era pakistan was a central sovereign of the US hardly facilitated
shoulders technical skilling to afghani warrior . US assist to pakistan moderated $ 0.8 billion per
annum , one of the massive in the history of US- pak kinship . this US- assist was distributed in to
financial assist & shoulders assist .
Financial manufacture in the lack of external assist (1989-1997)After experiencing a powerful
financial manufacture rate of 6.8% percent from 1986 to 1988 , pakistani budget decreased to
4.9% percent in 1989. At this period the initial republic ally elected administration kept office ,
after general zia-ul- haq a central US association in the battle against Russian invasion of afghistan
death in plan hits .
Benazir butto ;- Her domination started a decelerate recapture & was soon rejected by then
president of pakistan on complaints of hash-Money .
Nawaz sharif;- the fresh prime minister under tension after IMF & world bank , constitute
austerity expedient by decreasing nation ownership of commerce & evolving privatization . this
caused the production rate to 7.8% percent with almost no US- assist . this represents that us –
assist is significant but not a enormous adaptable sty economic production . this expand was very
insufficient lived due to strict red-tape massive expend corruption & eliminating education &
health facilities . the second financial strict in absence of US- assist seen an 1996, suitable before
the nuclear tests of 1997 when pakistan , s financial manufacture rate promoted from 2.1%
percent in 1993 to 6.7% percent in 1996 .
nuclear bans 1997-1999 :in 1998, pakistan tasted its nuclear power by deflagrating underhanded
nuclear bomb, which exterminated in accurate sanctions from the US, European union , IMF &
world bank . the financial production rate victim its lowest point 1.8% percent in 1997.
General Pervez Musharraf military coup ;- (1999-2008) in October 1999, General Pervez
Musharraf commanded a military coup to defeat the elected prime minister , & captured power
as the single possessor of authority in pakistan . his domination promoted the duty net developed
privatization , constituted deterioration of power by affiliate person elections enhanced the
interchange degree , introduce scientific & professionals in the domination and promoted
accountability to restrict massive promoted corruption . these modification however , were not
fast insufficient to generating economic production .
Extremist attacks the road towards economic recovery ;-(2001-2003)the extremist assaults of
September 11, 2001, caused financial production to 2.1% percent 2001 from 4.1% percent in
2000. After pakistan,s population proclaiment of allying with us in the battle opposite terrorism
, us – FAID was disbursed at an average of $ 0.8 billion per annum 2011 to 2003 . this promoted
economic production to 4.8% by 2003.
Asif Ali zardari domination (2008); - after viewing the state bank of pakistan,s annual report
2009-2010 , concerning the events of September 11 battle apposite extremism & us – assist
pakistan,s (GDP manufacture diminished )from 6.8% in 2006-2007 to 2.5% in 2011, enormous
beneath the achievement of 4.0% . the manufacturing sector , which is now 25% of the
agriculture economy of pakistan , suffered registering a manufacture 4.4% in 2011, absolutely
disappearing the budget of 7.6% in pakistan
Chapter # 4
methodology
In this research we use data which consist of one independent variable which effect change in
real GDP growth . we get this data from world bank statistics on countries ,world bank report
pakistan 2010 ,Monetary policy statement for 2009-10 and central bank of pakistan annual report
2010-2011. The sample consist of (51) fifty one observation (1960 to 2010) the dependent
variable is change in real GDP and independent variable is external assist from the united states,
European and arab nations in millions of dollar
We chose change in real GDP as dependent variable because it dearly indicates the economic
progress in a nation & external assists is independent because it effect GDP Growth to check
this effect we use following econometric tests by using Microsoft excel using data analysis tool
peck & linest command for the detection of hetroscedadtisty we use graph & also white test
Chapter 5
data performance & investigation
Year
real GDP ($ million)
official foreign Aid in ($ million)
1960
8534.946
252.27
1961
9045.93
250.12
1962
9451.478
375.11
1963
10272.6
482.28
1964
11050.39
505.72
1965
12201.63
494.73
1966
12908.18
360.001
1967
13605.26
476.711
1968
14589.35
400.616
1969
15392.98
328.101
1970
16140.68
421.252
1971
17020.89
413.18
1972
17360.95
304.809
1973
18587.38
282.38
1974
19245.38
444.813
1975
20555.5
664.01
1976
21090.04
1013.811
1977
21922.54
588.88
1978
23687.02
635.27
1979
24577.4
711.21
1980
27088.05
1183.01
1981
29233.63
823.17
1982
31144.27
915.15
1983
33255.85
727.86
1984
34940.33
729.35
1985
37593.01
769.58
1986
39661.33
916.52
1987
42220.35
820.17
1988
45439.81
1355.42
1989
47693.55
1446.27
1990
49819.95
1129.25
1991
52341.63
1371.09
1992
56375.4
1014.05
1993
57365.88
1005.37
1994
59509.78
1605.62
1995
62463.3
823.17
1996
65490.5
884.16
1997
66154.21
595.58
1998
67841.89
1053.54
1999
70325.4
732.13
2000
73321.11
702.87
2001
74684.98
1948.63
2002
77088.95
2138.1
2003
79321.86
2593.81
2004
82461.84
2733.22
2005
85766.821
2433.81
2006
89841.019
1951.83
2007
93438.15
2349.25
2008
95348.16
2634.45
2009
96423.07
3136.203
2010
97332.37
3577.102
Dependent variable ; GDP
Technique ; ordinary least squares
Date ; 12/11/1018 time ; 12:53
Sample ; 196O 2O1O
Involved remark ; 51
SUMMARY OUTPUT
Regression Statistics
Multiple R
0.851249
R Square
0.724624
Adjusted
R
Square
0.719004
Standard Error
15109.62
Observations
51
ANOVA
Regression
Residual
Total
df
1
49
50
SS
29436729326
11186723045
40623452371
Intercept
X Variable 1
Coefficients Standard Error
11763
3532.678939
29.51651
2.599403208
MS
29436729326
228300470.3
F
128.93854
Significance
2.50945E-15
t Stat
3.329766242
11.35511074
P-value
0.001657072
2.50945E-15
Lower 95%
4663.810957
24.29281498
RESIDUAL OUTPUT
Observation
1
2
3
4
Predicted Y
19209.13
19145.66
22834.93
25998.22
PROBABILITY
Residuals
-10674.17938
-10099.73488
-13383.45563
-15725.61814
Standard Residuals
-0.713621713
-0.675217256
-0.894750238
-1.051335392
Percentile
0.980392157
2.941176471
4.901960784
6.862745098
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
26690.09
26365.7
22388.97
25833.84
23587.78
21447.39
24196.88
23958.63
20759.89
20097.87
24892.32
31362.25
41687.16
29144.68
30513.95
32755.43
46681.32
36060.1
38775.03
33246.88
33290.86
34478.31
38815.47
35971.55
51770.26
54451.84
45094.52
52232.79
41694.21
41438.01
59155.3
36060.1
37860.31
29342.44
42859.82
33372.92
32509.27
69279.75
74872.25
88323.22
92438.11
83600.58
69374.21
-15639.69517
-14164.06871
-9480.788658
-12228.58069
-8998.431764
-6054.411947
-8056.204491
-6937.737212
-3398.943366
-1510.487534
-5646.943014
-10806.75374
-20597.11891
-7222.138247
-6826.929206
-8178.033074
-19593.2731
-6826.471679
-7630.760388
8.967012943
1649.467411
3114.698162
845.8619915
6248.797855
-6330.454817
-6758.289869
4725.434543
108.8414508
14681.18664
15927.86996
354.4840561
26403.19832
27630.1863
36811.77113
24982.06961
36952.48151
40811.84463
5405.225516
2216.70212
-9001.357243
-9976.274083
2166.245564
20466.81168
-1.045591016
-0.946938085
-0.633837638
-0.817541133
-0.601589693
-0.404767399
-0.538597137
-0.463822065
-0.227236184
-0.100983566
-0.377526085
-0.722484966
-1.377019325
-0.482835681
-0.456414001
-0.546741981
-1.309907266
-0.456383413
-0.510154093
0.000599489
0.110275059
0.208232985
0.05655006
0.417763059
-0.423222231
-0.451825122
0.315918683
0.00727659
0.981509978
1.064856927
0.023699013
1.765184466
1.847214684
2.461049066
1.670174979
2.470456251
2.728473774
0.361366074
0.148197506
-0.601785276
-0.666963291
0.144824236
1.368307642
8.823529412
10.78431373
12.74509804
14.70588235
16.66666667
18.62745098
20.58823529
22.54901961
24.50980392
26.47058824
28.43137255
30.39215686
32.35294118
34.31372549
36.2745098
38.23529412
40.19607843
42.15686275
44.11764706
46.07843137
48.03921569
50
51.96078431
53.92156863
55.88235294
57.84313725
59.80392157
61.76470588
63.7254902
65.68627451
67.64705882
69.60784314
71.56862745
73.52941176
75.49019608
77.45098039
79.41176471
81.37254902
83.33333333
85.29411765
87.25490196
89.21568627
91.17647059
48
49
50
51
81104.66
89522.77
104332.8
117346.6
12333.49076
5825.391738
-7909.696356
-20014.19667
0.82455489
0.389456265
-0.528802343
-1.338048089
93.1372549
95.09803922
97.05882353
99.01960784
=F. INV.RT(0.05,K-1,N-K =4.038393
F=128.93854
Result; the value of F is 128.93854 is grater then F Table value then we conclude that external
assist as positive impact of GDP OF pakistan
foreign aid Residual Plot
50000
40000
20000
10000
0
-10000 0
500
1000
1500
2000
2500
3000
3500
-20000
-30000
foreogn aid
Normal Probability Plot
Y
Residuals
30000
120000
100000
80000
60000
40000
20000
0
0
20
40
60
Sample Percentile
80
100
120
4000
foreign aid Line Fit Plot
140000
120000
Y
100000
80000
Y
60000
Predicted Y
40000
20000
0
0
10
20
30
40
50
60
HETEROSKEDASTICITY TEST ;
WHITE HETROSKEDASTOCOT TEAT ;
Residuals
residuals squre
-10674.17938
113938105.4
-10099.73488
102004644.6
-13383.45563
179116884.5
-15725.61814
247295066
-15639.69517
244600064.9
-14164.06871
200620842.4
-9480.788658
89885353.57
-12228.58069
149538185.7
-8998.431764
80971774.21
official foreign Aid in ($ million) official foreign aid squre
252.27
63640.1529
250.12
62560.0144
375.11
140707.5121
482.28
232593.9984
505.72
255752.7184
494.73
244757.7729
360.001
129600.72
476.711
227253.3775
400.616
160493.1795
-6054.411947
-8056.204491
-6937.737212
-3398.943366
-1510.487534
-5646.943014
-10806.75374
-20597.11891
-7222.138247
-6826.929206
-8178.033074
-19593.2731
-6826.471679
-7630.760388
8.967012943
1649.467411
3114.698162
845.8619915
6248.797855
-6330.454817
-6758.289869
4725.434543
108.8414508
14681.18664
15927.86996
354.4840561
26403.19832
27630.1863
36811.77113
24982.06961
36952.48151
40811.84463
5405.225516
2216.70212
-9001.357243
-9976.274083
2166.245564
20466.81168
12333.49076
5825.391738
-7909.696356
-20014.19667
36655904.03
64902430.8
48132197.62
11552816.01
2281572.591
31887965.4
116785926.4
424241307.4
52159280.86
46606962.38
66880224.96
383896350.9
46600715.58
58228504.1
80.40732111
2720742.74
9701344.638
715482.5086
39047474.63
40074658.19
45674481.95
22329731.62
11846.46142
215537241.3
253697041.5
125658.9461
697128881.6
763427194.8
1355106494
624103802.2
1365485890
1665606662
29216462.88
4913768.29
81024432.22
99526044.59
4692619.845
418890380.3
152114994.3
33935188.9
62563296.44
400568068.4
328.101
421.252
413.18
304.809
282.38
444.813
664.01
1013.811
588.88
635.27
711.21
1183.01
823.17
915.15
727.86
729.35
769.58
916.52
820.17
1355.42
1446.27
1129.25
1371.09
1014.05
1005.37
1605.62
823.17
884.16
595.58
1053.54
732.13
702.87
1948.63
2138.1
2593.81
2733.22
2433.81
1951.83
2349.25
2634.45
3136.203
3577.102
107650.2662
177453.2475
170717.7124
92908.52648
79738.4644
197858.605
440909.2801
1027812.744
346779.6544
403567.9729
505819.6641
1399512.66
677608.8489
837499.5225
529780.1796
531951.4225
592253.3764
840008.9104
672678.8289
1837163.376
2091696.913
1275205.563
1879887.788
1028297.403
1010768.837
2578015.584
677608.8489
781738.9056
354715.5364
1109946.532
536014.3369
494026.2369
3797158.877
4571471.61
6727850.316
7470491.568
5923431.116
3809640.349
5518975.563
6940326.803
9835769.257
12795658.72
-18.798735
73.97751649
0.009344458
0.226382419
6.16401E+16
#N/A
L.m= Test
21662.53084
249106.2393
368973610.2
48
6.53479E+18
#N/A
n.R2
……………………………………………………
f table value
=F.INV.RT(……………………………….
chisqur squire value =chisq.inv.RT.(…………………………..
230492247.7
152311896.2
#N/A
#N/A
#N/A
#N/A
0.47656737
3.190727336
5.991464547
H0 ;homoscedasticity
H1;HETEROSCEDASTICTY
Result ; the value of l.m is 0.47656737 is less then F Table value 3.19 0727336and chisqur squire
value 5.991464547 we accept h0 and concluded that there not heteroskedasticity in our data.
Conclusion
This study has found attention collecting result regarding external assist affecting GDP growth in
Pakistan from year 1960 to 2010 it is considered that economic factors like enemployment
external trade & inflation also effect the GDP Growth .
There are other socio- economic determinants like mortality rate , literacy rate , fertility rate &
GDP growth e.t.c which are eliminated due to relative importance and lack of data. However
further econometrics studies of these studies of this determinants spread over 57 year of
pakisatan is dependence could reveal more insight to the relationship between pakisatn GDP
growth and foreign Aid
It is also not rejected that economic growth will be sustained by increasing US- Aid . we use
econometrics test to check the impact of foreign aid on Pakistan GDP and our result is positive it
means we should increase foreign Aid.
In the future with more time series data and more monetary and socio economic factor will be
added to decrease the stochastic error then this research will be resource full for the policy maker
of US and Pakistan forengn Aid. It will be beneficial for both countries in the long run.
This research also help for better understandings of Pakistan GDP and US grants it effects the
war against terrorism so that both countries get benefit from economics resources and improve
sustainable development in the region
In short we conclude on the light of above literature on the foreign Aid effectiveness in Pakistan
that foreign Aid have good effect on pakisatn GDP growth with good policies it also have good
effect on poverty , litrecy rate and unemployment rate.
REFERENCES
Ahmad,fuzail zubaid;’Milestone for nation economy’