Role of Monetary Policy in Economic Development of Pakistan

Abstract

The aim of conducting this study was to look at the position of monetary assets in the perspective of economic development, data was collected from the ministry of finance government of Pakistan, and State Bank of Pakistan from (2000-01 to 2009-10) and linear regression was applied through SPSS 16 and concluded the position of imports and exports, that increase in exports will be the reason for increase in monetary assets of the country and same as increase in imports will also be the reason of increase in monetary assets in the shape of taxation, consumer price index is affecting negatively on the monetary assets in the way that when CPI is increasing the monetary assets available in the economy is decreasing always, finally if governments are trying to enhance the monetary assets in the economy they must relax the trade policy and tight control on inflation