Abstract
This study examines how foreign aid impacts Pakistan's economic growth from 1990 and 2022, emphasizing on significant indicators such GDP, GNE (government national expenditure), inflation, labor force participation, and FDI (foreign direct investment). Regression analysis, unit root tests, and co-integration tests are used in the research to look at the complex relationships between various variables. Important results show that GDP and foreign aid are positively correlated; highlighting the significance that economic growth plays in drawing in outside funding. Furthermore, GNE exhibits a strong positive correlation with foreign aid, indicating the significance of public spending in obtaining outside funding. Foreign aid is negatively impacted by inflation, underscoring the need for stable economic circumstances.
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