SAVING PATTERN OF RURAL FAMILIES IN PUNJAB

Mobilization of domestic savings has been considered vital since the times of classical economists. The issue of rural savings has become even more important as approximately 68% of Pakistan's population live in rural areas. The saving potential of this populace should be exploited to contribute to aggregate savings. The focus of the present study is on examining the interpersonal changes in the level of savings resulting from consumption pattern and movements in income level. It was found that about 55% of the average disposable income was saved by the rural households. However, the saved proportion was higher for the household with higher disposable income; while about one third of rural household families had negative saving or were depending on debt.