Abstract:
The aim of the thesis is to examine the empirical analysis of monetary policy and exchange rate on investment in the case of Pakistan. The Study considered independent variables that include exchange rate, interest rate, money supply, inflation, and remittances as determinants of dependent variable FDI. Data is taken from 1992-2021. The data was sourced from the World Bank and the State Bank of Pakistan (SBP). Through regression analysis, the study concluded that money supply has a positive impact on foreign direct investment and interest rate and remittances affect negatively whereas exchange rate and inflation have no effect
