Pakistan is one of the less advanced countries of the world. We use very little capital in production as compared to advanced and developed countries. There fore of our working force is engaged in agriculture. In most cases capital consist if a few cattle and a few wooden tools and a cart in some cases. Some expensive forms of capital; are also being supplied by the government in certain parts of the country and some other facilities are also being provided e.g. irrigation canals railways and roods etc. The government also owns some powerhouses. As a result n new industries are springing up which use modern method. Hence we have factories and machines at work. But still their importance in the economy is yet quite small. If we want to develop ourselves economically we must increase our capital supply. Without adequate capital to call ourselves a developed nation would become a mere dream. Nowadays the key to success economically and industrially is the supply of capital. We can take the example of Korea Japan China America Germany etc. They are not born established nations. They have relied on themselves conduced the people to save and made efficient use of capital. Very simply we can say that in to days age and era of technology and industry a country like Pakistan has to rely heavily on capital formation and hence the capital.