Abstract

This research investigates how changes in monetary policy impact Pakistan's economic growth. trajectory, focusing on macroeconomic indicators and monetary policy's role in long-term economic objectives. The research uses a quantitative approach and econometric methods to evaluate data from 1991 to 2020. Results show that certain variables, like interest rates, capital formation, labor force, and current account balance, positively impact economic growth, while others, like exchange rates, net trade, money supply, and private sector access to domestic credit, have negative impacts. These statistically significant correlations show how monetary policy variables and economic outcomes interact in complex ways.

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