Social Rates of Return in Pakistan's Large-scale Manufacturing Sector

Shamim A. Sahibzada and Mir Annice Mahmood
Additional contact information
Shamim A. Sahibzada: Pakistan Institute of Development Economics, Islamabad
Mir Annice Mahmood: Pakistan Institute of Development Economics, Islamabad

The Pakistan Development Review, 1986, vol. 25, issue 4, 891-906

Abstract: The paper attempts to estimate social rates of return in Pakistan's large-scale manufacturing sector. As cut-off rates, they can help in the selection of public and i>rivate sector projects and can also be used as' estimates of the Accounting Rate of Interest (ARI) which can then be used as test discount rates in the economic analysis of projects. In the context of Pakistan, our study makes an important contribution in that whereas the discount rates hitherto used in the country for an economic appraisal of projects have all been determined arbitrarily,1 we, in this study provide first ever rates that have been arrived at empirically. For example, the discount rate used in both private and public sector investment projects for a considerable period of time was arbitrarily fixed at 12 percent. The reason given for choosing this estimate was that it was based on the rate used by lending institutions on the loans they advanced to various development-oriented agencies.

Date: 1986
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.pide.org.pk/pdf/PDR/1986/Volume4/891-906.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pid:journl:v:25:y:1986:i:4:p:891-906

Access Statistics for this article

More articles in The Pakistan Development Review from Pakistan Institute of Development Economics Contact information at EDIRC.
Bibliographic data for series maintained by Khurram Iqbal ().