Drivers of Economic Growth in Pakistan (1990-2022): An Appraisal

The aim of the study is to examine the driving factors (inflation rate, interest rate, foreign direct investment, population, and exchange rate) of economic growth in Pakistan during 1999-2022. The study used secondary data and multiple regression analysis. The results found that inflation rate, interest rate, and population have negative impact on economic growth. Furthermore, the result shows that foreign direct investment (FDI), and exchange rate has positive effect on economic growth of Pakistan. Therefore, the main findings suggest that inflation, interest rate, and population are harmful to economic growth. This study adds to the existing literature on the relationship between interest rate, inflation rate, exchange rate, population, FDI and economic growth. The findings suggest that a well-designed macroeconomic policy is needed to control and promote economic growth and development, which will ultimately improve social well-being.