International Journal of Management Research and Emerging Sciences Volume 6 Issue 1 (2016) PP. 71-90 71 Changing Demographics and Economic Growth: A Case Study of Pakistan Muhammad Zaheer Khan 1 , Nazima Ellahi 2 , Dr. Muhammad Ramzan Shaikh 3 , Salman Masood Sheikh 4 Abstract The objective of this study is to determine the relationship between various demographic variables and economic growth of Pakistan for the period of 1980-2012. Time series econometric technique has been used for the analysis. Johansen’s co-integration test showed presence of long run relationship between different demographic variables. After establishing the presence of error correction term in the model, variance decomposition test has been used to identify the individual shocks between the variables. The study concludes that the demographic transition has very important role in the economic growth of Pakistan. Keywords: Pakistan, Demographic trends, Human capital formation, Economic growth. 1. Introduction The goals of economic growth and development can never be accomplished without Human Capital Development. It matters a lot to know that the population which comprises of people of different age and gender would be productive for the economy or not? If the populaces are healthy, skilled, efficient, and productive, the economy will flourish. Change in demographic situation can affect the economic situation of the country. It begins with the changes in health status because health is the key to success for any economy. Society with better health condition is more likely to have better human capital formation, which induces the skills and 1 Assistant Professor, Department of Economics, Baluchistan University of Information Technology, Engineering and Management Sciences (BUITEMS), Quetta Pakistan, zaheer.onnet@gmail.com 2 Assistant Professor, Business & Economics Foundation University Islamabad, nazimaellahi@yahoo.com 3 Assistant Professor, Department of Economics Bahauddin Zakariya University Multan, ramzansheikh@bzu.edu.pk 4 Assistant Professor, Department of Business and Management Sciences, The Superior College, Lahore, directorqa@superior.edu.pk