Abstract
It is an established fact that investment and economic growth have a positive relationship but no consensus has been developed on the type of investment. The study investigated the relationship of PSDP, FDI and Private investment for Pakistan’s economy, and the results reveal that all the three forms have a long-run positive relation with growth where private investment has a strongest impact and FDI has a least impact. Moreover, it is the private investment and growth of Pakistan’s economy which leads to increased public development projects which means increasing private investment in the economy has two folds impact on PSDP; increase in economic growth increases development projects, increased revenue generation through taxes create more resources for PSDPs.
