Policy Research Institute of Market Economy

How government of the people, by the people for the people deprives people from their right to prosper is indeed an intriguing enquiry if conducted. Perhaps government meddling in private sector’s domain creates most of the economic problems across the world. In Pakistan, government transgressions in private realm has monetary and financial dimension as well among others. In other words, government denies the right of entrepreneurs to avail finance for growth and expansion of their business by excluding them from available pool of finance in economy.

The term ‘Crowding out’ is monetary jargon implies; private sector being deprived of access to credit because credit available in market is already booked for government expenditure on preferential basis ‑ lending to government is a safe investment as compare to private sector.

Figure 1

graph 1

(State Bank of Pakistan, 2012)

However, if we analyze annual reports published by State Bank of Pakistan shown in…

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Social and Development log of Pakistan (SDLP) is an attempt to highlights real public issues, which include social, economic and political issues, and complete policy analysis of that issues having experts opinion and analysis on it. SDLP will raise all public issues on the basis of facts and figures and try to advocate at highest forum which may influence the policy makers and draw their attentions towards real problem. SDLP also welcome to those who want to contribute on our blog at https://developmentpk.wordpress.com/. For that you may send your queries/suggestions/articles etc at rajataimur1@gmail.com. Twitter: https://twitter.com/SDLPak or @rajataimur786 Facebook: https://www.facebook.com/SDLPak
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