Impact of Major Economic Variables on Economic Growth of Pakistan

Abstract

The aim of this paper is to examine the impact of major economic variables includes
\ninflation rate, interest rate and exchange rate on economic growth of Pakistan. The secondary data
\nhas been taken for the years from 1981 to 2013. The results from multiple linear regression model
\ndescribe that both inflation rate and interest rate spread negative impact on Pakistan‟s economic
\ngrowth while exchange rate is found positively significant on the economy. Therefore, all selected
\nvariables having less impact on economic growth of the country as compare to other factors that put a
\nserious impact on Pakistan‟s economy conditions.