Acta Universitatis Danubius. Œconomica, Vol 11, No 2 (2015)

Abstract

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