Problems Of Foreign Direct Investment In Pakistan.

Abstract

It is essential for a country's economic growth and development to have foreign direct investment (FDI). In order to build their economies developing countries rely on foreign direct investment (FDI). Pakistan's economic growth is mostly due to foreign direct investment (FDI). Pakistan's economic growth is supported by FDI which increases capital formation via enhanced industrial capacity export promotion and the creation of new jobs. Pakistan's FDI inflows started to vary in the 1990s and the purpose of this study is to examine the variables that impacted FDI inflows in Pakistan from 2005 to 2015. This study uses a regression model to analyse the effect of several factors on FDI. Besides commerce currency rates GDP and per capita income (economic variables) health and education (social aspects) and roads railroads telephones and the internet (infrastructure factors) this study also examines a range of additional elements (infrastructure factors). With information from Pakistan's central bank and economic survey this research was able to draw conclusions (secondary sources). FDI is positively impacted by a wide range of social and economic factors according to the study. However, from 2005 to 2015 there was no significant and positive association between infrastructure and foreign direct investment. Increasing growth rates and ensuring political stability are two key factors for attracting foreign direct investment into the country according to the study.