INTRODUCTION The two gap theory suggests that the developing countries have to rely heavily on foreign capital in flows ( FCI s ) to fill two gaps: the import export gap and the savings investment gap.Despite the fact that all developing countries need FCIs for their development the volume the type: · Grants · Loans · Foreign direct investment · Export credit · Project , non-project assistance · Technical assistance etc.. Of these flows vary. The country size and the state of economic …showed first 75 words of 560 total…

…showed last 75 words of 560 total…It is also note worthy in table 1 and figure 1 that consessional debt (CON) has been sharply decreasing as a ratio of EDTin recent years. All debt indicators in table 1 and figure 1 show that Pakistan’s debt burden is increasing over time. Source : WORLD DEBT TABLES, 1990-1991,1994-1995, 1996 WHERE, EDT = TOTAL DEBT STOCK XGS = EXPOPRTS OF GOODS AND SERVICES GNP = GROSS NATIONAL PRODUCT TDS = TOTAL DEBT SERVICE INT = INTEREST PAYMENTS RES = INTERNATIONAL RESERVES CON = COCESSIONAL DEBT