This study empirically tests the impact of Population growth on Economic Development of Pakistan
for period of 1975-2008. Demographic transition helps in creating policy Environment that takes maximum
advantages of demographic potential of the country. ARDL technique was incorporated to investigate the
population and economic development relationship. The result of the model shows that the impact of
population is positive and significant but the problem associated with huge population growth is the flood of
newly produce work force, its management and providing different facilities even basic needs become a
challenge for government and policy makers. To tickle this issue this study incorporated unemployment rate
and expenditure made on health and education to the model in-order to investigate the impact of population
growth directly and indirectly on economic growth in Pakistan. The results of the study indicate that
Population growth has positively and significantly contributed to economic development but negatively
affected by unemployment rate. HRD is although positive but insignificant. What can be concluded is that the
direct impacts of population growth is positive on development of the economy but reverse is the case when
indirect analysis is made and that leads to unemployment. Now although on one hand if it increase growth but
on the other hand it creates a problem of unemployment and leads to lacking of educational and health facilities.
The government is advised to utilize this additional workforce efficiently as a policy tool to achieve high and
desired level of growth.