This document discusses low saving rates in Pakistan. It defines savings as disposable income left over after consumption expenditures. Pakistan has had very low savings rates in the last two decades, both absolute and relative to other developing countries, due to factors like lavish spending, new products, and emphasis on consumer goods production. National savings consist of corporate, household, and government savings, with household savings accounting for about 83% of total savings in Pakistan. Causes of low savings include poverty, unemployment, lack of foreign investment, outdated technology, inflation, and poor infrastructure. Low savings impacts income, wealth, employment, education levels, and macroeconomic stability. Recommended remedial measures include reducing government consumption, increasing GDP growth, improving health

1. MACRO ECONOMICS
 SIDRA ZAIDI
 SHUMAILA
 LUBNA
 BUSHRA

2. LOW SAVING IN
PAKISTAN
Causes, impacts and remedial
measurements

3. SAVING
The amount left over when the cost of
a person’s consumer expenditure is
subtracted from the amount of disposable
income that he or she earns in a given
period of time

4. SAVING IN PAKISTAN
During the last two decades, the saving
rate of Pakistan has remained very low in
both terms absolute and relative to other
countries at similar stages of development.

5. Because of some factors financial savings
affected negatively
for example
 lavishly
spending on
consumption
 increased
availability of
new products
a production
structure that
has emphasized
consumer goods
production etc.

6. NATIONAL SAVINGS
CONSIST OF THREE
COMPONENTS
Corporate
household
government savings

7. HOUSEHOLD SECTOR
. During the last three decades in Pakistan the
household sector has accounted for about 83
percent of the total savings.

8. CAUSES OF LOW SAVING IN
PAKISTAN

Vicious circle of poverty
Unemployment
Lack of foreign investment
Use of backward technology
 Inflation
Backward infrastructure

9. IMPACTS OF LOW
SAVING IN PAKISTAN
Income
Wealth
dependency ratio
Employment and unemployment
Various categories of education
macroeconomic stability.

10. REMEDIAL MEASURES :
 A transitory change
 Government’s current expenditures
 GDP growth
 Provide basic nutrition and health facilities
 New technologies and new training centers
 Free education and scholarships

11. CONCLUSION
Domestic savings
Economic growth
. Pakistan’s Per capita
 use of modern technologies and control on
population.