Naseem Akram, Muhammad Irfan Akram


Due to close relationship of savings to economic growth,
poverty, income inequality the analysis of the savings behavior
becomes very important in development economics. The present study
has analyzed the saving behavior of Pakistan for the period 1973-
2013. It has been found that age dependency, foreign savings and
inflation have a negative and significant relationships with all the
three type of savings (i.e. national, public and private), while economic
growth and financial sector development enhances savings in
Pakistan. The study finds that interest rate has an insignificant impact
on nationals and private savings. However, in the case of public
savings the impact is positive and significant. As far as the role of
taxes is concerned, it has been found that taxes discourage private
savings while the impact on public savings is positive.

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