Pakistan has a very important strategic location. And due to its strategic location so many countries are connected with Pakistan through land as well as through Sea route. Pakistan is the central businesses center and focal point for many investors of different countries in Asia. But After 9/11 Pakistan is coping with many problems like: Terrorism, political instability, Economical Crises and instability, and very recent natural disaster of the flood and also having an earth quick in recent past. These all factors are effecting the capital inflow especially foreign direct investment and also the economic condition of the country.

Foreign direct investment (FDI) refers to long term participation by a country A into country B (in this case Pakistan) . It usually involves participation in management, joint-venture, transfer of technology and expertise. We will cover the factors which actually impact on FDI in Pakistan