Ensuring an effective and robust capital formation system is essential sources of capital and economic growth sources to raise relatively low-cost capital to. How can the answer be improved.
It seemed likely that capital formation sources are actually committed to the production of capital goods. One of the main sources of formation of human capital is the investment in education the other sources are investing in health, in job training, information and migration this is the reason why parents spend so much on the education of their children. Foreign aid is an important source of capital formation in pakistan government of pakistan receives foreign aid from international financial intuition and advanced countries of the world and collects more.
Sources of capital formation and importance:the stock of capital goods can bebuilt up and increased through twomain sources:(1) domestic resources and (2)external resources(1) domestic resources:domestic resources play animportant part in promotingdevelopment activities in the countrythese sources in brief are:(i) voluntary.