Abstract
We have estimated real interest rate elasticity of real private remunerative bank deposits for the case of Pakistan using a multiple regression model. We have used time series data for the period of 1979 to 2016. In addition to real interest rate, real income, workers’ remittances, and government borrowing turned out to be significant determinants of real private remunerative deposits level in Pakistan. We found that a 1.0 percentage increase in real interest rate was associated with 0.3 percent increase in real private (remunerative) bank deposits in Pakistan during 1979-2016.