Circular debt occurs when one entity facing problems in its cash inflows holds back payments

to its suppliers and creditors. Thus, problems in the cash inflow of one entity fall down to other
segments of the payment chain. In Pakistan, circular debt is a public debt which is a fall of
unpaid government subsidies, which results in increase of debt on distribution companies.

Deregulation is the reduction or elimination of government power in a particular industry;

generally perform to create more competition within the industry. Deregulation involves
removing government legislation and laws in a particular market. Deregulation often refers to
removing barriers to competition. A good example of deregulation is mail delivery. The Royal
Mail had a duty to deliver a letter anywhere in the UK, but competition was not allowed.

An increase in the amount of goods and services produced per head of the population over a
period of time. Economic growth is the process by which a nation's wealth increases over time.
Although the term is often used in discussions of short-term economic performance, in the
context of economic theory it generally refers to an increase in wealth over a complete period.

Capital Formation is defined as that part of country's current output and imports which is not
consumed or exported during the accounting period, but is set to the side as an addition to its
stock of capital goods.

Capital formation is a concept used in macroeconomics, national accounts and financial

economics. Rarely is it also used in corporate accounts.

The invisible balance or balance of trade on services is that part of the balance of trade that
refers to services and other products that do not result in the transfer of physical objects.
Examples include consulting services, shipping services, tourism, and patent license revenues.