Development is the key of a nation success. Development plays an important role in the improving of peoples’ standee of living. Through the development and growth, the living standard will be improved. Many of the literatures state that growth has significant effect of economy. For the achievement of the Economic goal the growth is compulsory. in 1950’s & 80’s a lot of the growing countries understood the target growth standard of economic, but the people standard of living is not changed, because the degree of poverty in that nation is higher, the illiteracy is high, lack of health facilities. The effect of these things is higher on Economic development (Maulana, 2014). Growth can make earnest circles of wealth and chance. In case of when the Growth rate is high in nation, then Government offers different facilities and the education level grow up.  (Al-Shawawreh, 2014). Import and export play vital role in the development of Economy. it struggling to boost the efficiency. Institutions who play an intermediary’s role between lender and receiver parties. Most of the countries which are under development or poor economic system, they considered the growth of economic system is the main goal. The dependency of economic development is possible on the comprehensive situation of financial institutions (Rajaraman and Visishtha, 2002). The higher performance of financial institutions indicates the sign of economic growth and the wealth in any economy, country and in the region, while the lower performance of financial institutions is not just influencing the development, structure and growth of economic situation of the specific country but the reflection of poor performance of financial institution effects the global economy (Muhammad Farhan, 2012).

The growth story of the Pakistan is very remarkable throughout the development and growth time. The growth situation of the Pakistan mostly average annually increased. The average rate of the growth commonly touched the 5% increased annually from past sixty years. If looking to the per capita increase of the economy is 2.5% boost annually. Different sectors of country show increase in their production and the contribution in the economic development and growth, but the contribution of the manufacturing sector is very dynamic in the contribution to country economy. As comparing the Pakistan economy with South Asia economies, the economy of Pakistan is averagely increasing faster 2% from the south Asia in the time era of 1960s, 1970s and 1980s. but in from the time of 1993s the growth rate of the economy going down from the regional average level. After the Independence Day in 1947, in the two decades the growth rate of the Pakistan among the area of South Asia Pakistan has high level of growth rate, Pakistan can achieve highest growth rate among the area countries. As per the reported work of World Bank (200), the report exposed that Pakistan in the more exporter of Manufacturing products as compare to the Indonesia, Thailand, Malaysia, Turkey and Philippians in the time period of 1965. But in the series of 1990s Pakistan is lowest growing and developing countries in era of South Asia. The role of the Pakistan is decrease and fall down more as compare to their own role in Pakistan. The commonness of poverty, which deteriorated from 46% in the mid-1960s to 18% in afterward 1980s increased to 34% by the late 1990s. The chief illustrative influence for this problem is the pattern change in the elementary model of growth carried about by Mr. Z.A Bhutto rapidly after pretentious control in 1971. His government nationalized all the main industrial businesses, banking sectors, insurance institutions, education etc. and formed a key disturbance to economy and an attrition of private stockholder sureness that persevered for the 2 decades. This experimentation with collectivism obligated a negative impression on industrial development and growth level, export growth, the excellence of education and contributed a predominant character to the officialdom in economic decision-making situation. The replacement of a philosophy of entrepreneurship, risk taking condition and innovation position of economy by rent looking for and benefaction repressed the private sector energy and vigor. The appearance of administrators as business bests armored the new culture. Along with different interferences in business and different trades activates of government and other government agencies effect the growth rate, also when the Bangladesh is separated from Pakistan it will affect highly on the economy.  In the governmental time period of Zia ul haq regime the prospect to unfasten maximum of the harm finished by nationalization was misused. In its place of attractive practical measures to converse the state-owned and conquered economy the rule preserved status – quo. Though the track followed by their direct ancestor was not tracked and the procedure of nationalization was uncontrolled the privileged alignment to public sector ensured not moderate in any noticeable way. The economic presentation was imposing in this historical not owed to any important policy or institutional improvements. The government profited from the harvest that arose on torrent from great public-sector stashes complete in the 1970s, the greatest significant between them stayed the Tarbela Dam that further significantly to irrigation water accessibility and hydel power capacity, the enricher and cement industries.

According to the study of IMF (2005), the study is conducted on the Pakistan economy for 45 years from the time of 1960 and 2004. The study highlights the importance and significance of the rainfall in the area and the investment boost of the peoples, they indicate that these both are the main determinant at the time of increasing growth. This time period also reduces the low inflation from past. Because in past the inflation rate of the country is very high. In 1974-77 the inflation rate of country is 27% which is reduce to 7%. After that the inflation is increased in 1994-1995 to 12% and then reduced it to 4% and so on. As the World bank (2006), reported about the economy determinant of the Pakistani economy and stated that the economy growth of Pakistani is possible and boost with the help of improving the standard of education, increasing the financial institutions and their performance, opening doors to different trades and create a good infrastructure of public. It declines when governments execute extreme loads on the private sector of country. Economic growth declines when governments ensure not convey out strategies favorable to macroeconomic constancy. An upsurge in the inflation rate, the instability of the production gap, actual exchange rate over estimate or possibility of financial disasters all prime to an important decrease in economic growth. The worsening of world growth circumstances among the 1970s and 1980s directed to a reduction in a nation’s growth rate of about 1.5 percentage points. 

Growth is the basic concept of every country economy. Most of the countries in this race that to boost the economic position globally and get edge over world. Past studies and the economic growth theory explained different useful information about the growth by which a nation can able to get high level of the economic growth in the world. It is very important for a nation to reduce the level country poverty and to develop the country peoples living standard it is necessary to past the growth speed to turn it. Numerous of the investigators highlights different factors that effect and influence the growth. Different determinates are explained but the common and major determinant are the GDP and GDP rate. The other key factors that determine a nation growth are the initial investment position, the investment level that investing the physical capital, the quality of the labors in country market and the level of human capital, the policies of country for macroeconomic condition, the financial institution quality, the governance combination and the important thing is the other environment of country. These things are commonly seemed in the numerous of world countries for long period of time. The large sum of effecting factor that influences hugely the growth is the investment. A strong association exist among the growth and the investment level of country.


 

Correlation

Correlations

 

GDP

 IM

EX

GDP

Pearson Correlation

1

.794**

.875**

Sig. (2-tailed)

 

.000

.000

N

23

23

23

IM

Pearson Correlation

.794**

1

.964**

Sig. (2-tailed)

.000

 

.000

N

23

23

23

EX

Pearson Correlation

.875**

.964**

1

Sig. (2-tailed)

.000

.000

 

N

23

23

23

**. Correlation is significant at the 0.01 level (2-tailed).

                      

Regression

 

 

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Durbin-Watson

 

1

.895a

.801

.781

.3069105

1.605

 

 

Model

Sum of Squares

df

Mean Square

F

Sig.

 

 

1

Regression

7.573

2

3.787

40.200

.000b

 

 

Residual

1.884

20

.094

 

 

 

 

Total

9.457

22

 

 

 

 

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

 

B

Std. Error

Beta

 

1

(Constant)

3.006

1.339

 

2.245

.036

 

IM

.765

.411

.694

1.981

.078

 

EX

2.076

.501

1.544

4.141

.001

 

 

Discussion

The growth story of the Pakistan is very remarkable throughout the development and growth time. The growth situation of the Pakistan mostly average annually increased. Development play an important role in the improving of peoples’ standee of living. Through the development and growth, the living standard will be improved. Many of the literatures state that growth has significant effect of economy. According to the study of IMF (2005), the study is conducted on the Pakistan economy for 45 years from the time of 1960 and 2004. The study highlights the importance and significance of the rainfall in the area and the investment boost of the peoples, they indicate that these both are the main determinant at the time of increasing growth.

As the World bank (2006), reported about the economy determinant of the Pakistani economy and stated that the economy growth of Pakistani is possible and boost with the help of improving the standard of education, increasing the financial institutions and their performance, opening doors to different trades and create a good infrastructure of public. It declines when governments execute extreme loads on the private sector of country. Economic growth declines when governments ensure not convey out strategies favorable to macroeconomic constancy. An upsurge in the inflation rate, the instability of the production gap, actual exchange rate over estimate or possibility of financial disasters all prime to an important decrease in economic growth.

As the result of Yuhong, Li and et. al. (2010) study, which is conducted on the association of Import, Export and on Economic Growth. The study is conducted on Chinee Economy. The result shows that the import of country increasing the economic growth while the export will oppositely impact on the economy growth. The result of Asafu-Adjaye et al (1999) study highlights the bluer result, because the study is conducted on the economy of India and the result did not find any evidence and not clearly highlight the relationship. According to the work of Vohra (2001), the outcome of the study show that the export of the economies has significant and positive relationship with Economic Growth.