摘要：This study investigates the contributions of banking sector in economic growth of Pakistan. The data used in this study were collected from the period of 1981 to 2010 o 10 banks. Augmented Dickey Fuller (ADF) and Philip Perron unit root test, ordinary least squ are and granger causality test have been used. Unit root test confirms the stationary of all variables at first difference. Regression results indicate that deposits, investments, advances, profitability and interest earnings have significant positive impa ct on economic growth of Pakistan. The Granger-Causality test confirms the bidirectional causal relationship of deposits, advances and profitability with economic growth. On the other side we found unidirectional causal relationship of investments and interest earnings with economic growth runs from investments and interest earnings to economi c growth. It is recommended that the policy makers should make policies to enhance the banking sector in Pakistan because banking sector is significantly contributing in the economic growth of Pakistan
