Foreign Aid and Economic Growth

This paper represents the study about the impact of foreign aid on the economic growth of Pakistan. It takes into consideration previous studies done on the same topic for different developing countries. Results show that if aids are properly allocated in desired section which really need development, it can prove fruitful. But normally aid is given to such countries that always have some objective behind that with an already defined section where that aid should be utilized. But if such countries are given free hand to use them in their desired section, they can have more appropriate and better results in their development. Also in such countries there comes the prospect of corruption. If corruption is properly removed from the roots of that economy than it necessarily would have better developmental result on its economy