It is the need of the hour that in the wake of global dynamics, macro-economy of Pakistan is examined in detail. This may enable the policy makers to rethink and recast the growth and development objectives and strategy. Economic growth depends on a large number of social, economic, political, demographic, financial and global factors.Macroeconomics is based on General Equilibrium approach implying that the economy is influenced by the interplay of all conceivable factors. It is extremely Abstract | This paper made an econometric investigation of inflation and economic growth in Pakistan for the period 1990-2017. Money supply, imports, exchange rate and budget deficit were the major causes of inflation. Growth in GDP is expected to lead to a reduction in inflation. To combat inflation, unwarranted growth of money supply is checked and the exchange is stabilized. It is less likely that imports are reduced to lessen inflation due to economy needs. It appears difficult that GOP succeeds in curtailing the BD because of the widespread corruption and money-laundering. Human resource development coupled with investment and value-added by both agriculture and industry contributed significantly to economic growth. Should the policy makers attach genuine attention to these factors, it is expected that Pakistan economy will perform reasonably well. Specification and diagnostic tests revealed the appropriateness and soundness of the inflation and economic growth models. Parameters stability was examined for two periods (1991 and 2002). CPI showed stability in both periods but GDP did not demonstrate in the second period.
T he agriculture sector plays a major role in Pakistan's economy, accounting for 18.74% of GDP and providing 38.5% of employment (GoP, 2019). There are four sub-sectors in the agricultural sector, including crops, livestock, fisheries, and forestry. Pakistan's main agricultural exports include raw cotton, cotton yarn, fruit, fish, fish preparation, vegetable, rice, wheat, oilseed and sugar. In the farming sector, fruit production plays a vital role in Pakistan's econo-my and other crops (vegetable fruits and fodder) have share 2.1 percent of GDP (GoP, 2019). Nature has blessed Pakistan with the best ecological environment for growing large varieties of vegetables and fruits. Given Pakistan's natural topography, there is an increasing importance of the country's horticultural activities (Naseer et al., 2016;Raza et al., 2012). Among countries of the world, there are few countries that grow fruit in special cool climatic conditions (apple, cherries, plumps, pears), warm climatic condition (grapes, melon, apricots, pomegranates
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