Private investment in Pakistan driven by GDP growth and public sector.
Private investment in Pakistan is crucial for economic growth, job creation, and poverty reduction. A study analyzed data from 1974-2013 to identify factors influencing private investment. Short-term determinants include GDP growth, public sector investment, and domestic savings. Long-term factors include exchange rate, GDP growth, public sector investment, savings, trade openness, and interest rate. Surprisingly, different political regimes in Pakistan do not impact private investment. Stability tests confirmed the reliability of the model over time.