Abstract:
Governance plays a crucial role in shaping the economic development of a country, especially in developing economies such as Pakistan. Among the various dimensions of good governance, government effectiveness is particularly important as it reflects the government’s ability to design and implement sound policies, deliver public services, and maintain a stable economic and business environment. Effective governance strengthens institutional trust, enhances investor confidence, and supports sustainable economic growth. This study examines the impact of government effectiveness on Pakistan’s economic performance over the period 2014 to 2023. The analysis is based on secondary data obtained from the World Bank’s Worldwide Governance Indicators and World Development Indicators. A quantitative research approach is adopted, and Ordinary Least Squares regression is employed to examine the relationship between government effectiveness and economic growth. The findings indicate that improvements in government effectiveness are associated with more stable and positive economic outcomes. Periods marked by better policy implementation, administrative efficiency, and institutional stability tend to coincide with improved economic performance. Conversely, weak governance is linked with economic uncertainty and inconsistent growth patterns. The study highlights that improving government effectiveness is not only a governance objective but also an economic necessity. For Pakistan, sustained economic development requires stronger institutions, consistent policy execution, and improved accountability mechanisms. The results provide useful insights for policymakers and contribute to the existing literature on governance and economic growth in developing economies.
