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Tuesday 23 February 2010

Deficiency of Capital

It is the capital which mutiplies and produces more wealth. If the capital is insufficient, the dream of economic development can not be realized. One essential condition of capital formation is saving. But, since ther per capital income in Pakistan is so low that majority of the people are hardly able to save anything from their income. Low savings retard investment. With low investment, the level of production decrease which creates enumployment and decrease in GDP.

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