1.1.

1 Gross Capital Formation

It involves the dozens of pursuits or maybe steps measures by the host country for the

betterment of transportation, business activities and human capital, in addition to improving

public and safety status inside the state (Chaudhry, Mehmood & Mehmood, 2013).

1.1.2 Government Expenditure

Government expenditure involves most of the current expenditures made by the

government in order to buy goods as well as services. In addition, it involves nearly all spending

upon country wide defenseman protection, but excludes armed forces expenditures made by the

government which can be a part of capital formation (Chaudhry, Mehmood & Mehmood, 2013).