Savings and Financial Flows in the Corporate Sector, 1959-63

In common with most developing countries, the statistical information about savings in Pakistan is weak and incomplete. Some studies were made in the recent past [1(a), pp.1-50; 1(b), pp.163-208] but these relate to specific sectors of the economy, or they are based on one statistical source and may, therefore, be inconsistent with data from other sources. The only comprehensive estimate is produced annually by the Planning Commission as a corollary of its work on national accounts and investment expenditures. Recent evaluation reports [2(a), pp.5-9; 2(b), pp.21-25] have contained estimates of national gross savings calculated as the difference between the investment expenditures on one side, and external financing on the other. As the investment estimates are derived from data on key inputs [2(a), pp.173-181; 2(b), pp.137-144]—machinery, transport equipment, steel and cement—com¬bined with a more detailed estimate for one year used as the benchmark, there probably is a significant standard error of estimate here. With regard to external finance, the balance of payments data used are probably more accurate than the investment figures, but are also inadequate, notably with regard to foreign private investment and technical assistance.