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Stock Market and Economic Growth in Pakistan

2 Mins read

There is a strong relationship between the stock market and macro variables like consumption, and the economic growth of a country. Plus, if overseas Pakistanis send money to Pakistan on a regular basis, it can help us improve foreign reserves and have a good impact on the stock market of Pakistan. 

Fluctuations in the stock market definitively shape the economic growth of countries like Pakistan. Important reasons for this direct relationship are the high propensity to generate investment opportunities, labours’ work, and capitals that ultimately boost Pakistan’s economy.

Developing nations like Pakistan have even more stringent relation among these micro and macro-economic factors that dictate the financial stability of the country. 

This is because the capital market always plays an important role in the growth of the commerce industry, which ultimately shapes the whole economic standing of a country to a large extent.

Multiple factors encounter fluctuations in the stock market. Among all, one of the essential elements is money transfer to Pakistan and the linked services that are involved in online and direct money transfer services internationally. The grass-root level at which the masses consider the services of money transfer easy or difficult, directly formulates how the stock market and the partner economy will be affected in Pakistan.

Some researches have been carried out to prove this direct relationship between the stock market and the economy of Pakistan. These studies sometimes contradict by indicating that the stock market lacks its due role to be influencing the aggregated demand of the Pakistani economy. At the same time, other studies defend the opposite argument of having a sound role played by the stock market in the economy shaping of Pakistan.

 However, the former opinion may be augmentable as the stock market in Pakistan most of the time remains disturbed in the absence of other indicators. Thus, a sudden shooting up or down of the stock market may poorly contribute to the stability of economic outcomes, especially here in Pakistan. 

Furthermore, many researches have indicated that economic stability, growth, and its extension also directly relates to two other significant factors. These are market size and market liquidity that prevail in terms of market capitalization. In relatively simple words, the economy could be stabilized and enhanced via increasing the size of stock markets and market capitalization in developing regions like Pakistan. 

This measure will help Pakistanis that live across the world or their loved ones living abroad to send and receive money with the greater ease of money transaction matters, special currency exchange rates, and amazing remittance services that our customers can enjoy. Thus, in turn, they are contributing to the stock market development and economic growth of our nation. 

ACE Money Transfer has built a strong customer community and trustworthiness as they have been providing convenient, safe, and cost-effective money transferring services since 2002. 

Thus, almost two decades of mutual trustworthiness has enabled its users to rely on it for a convenient transfer all across the globe. After all, the stock market can stabilize and glorify the economy of Pakistan.