CAN FOREIGN INVESTMENT CONTRIBUTE TO DEVELOPMENT IN PAKISTAN? AN ANALYSIS OF ITS SIGNIFICANCE FROM PAKISTAN'S VIEWPOINT

Foreign Direct Investment (FDI) is widely acknowledged as a crucial catalyst for economic development, especially in emerging economies such Pakistan. Its significance lies the fact that it can introduce vital funds, fresh technologies, and know how to domestic markets. These advantages stimulate progress generate novel prospects enterprises individuals alike. Over past few years, there has been resurgence of interest FDI promoting growth. Global leaders are now more inclined lure foreign investments enhance their raise standard living people. played critical role driving Pakistan's development. The State Bank Pakistan reports inflows saw significant increase 137% fiscal year 2020-21, amounting $2.78 billion, demonstrating country's concerted efforts attract investment key sectors like energy, telecommunications, construction. Our study aims provide empirical evidence relationship between growth We analyzed data spanning two decades, from 1996 2022, examined impact on Gross Domestic Product (GDP), while also considering various other factors political stability, terrorism, trade openness. 
 findings indicate favorable influence Pakistan, particularly when coupled with liberalized policies. observed strong positive correlation GDP growth, indicating serve potent driver However, our analysis underscores augmenting For instance, stability emerges pivotal factor affecting be instrumental attracting investment. Similarly, implementation effective measures combat terrorism establish secure stable environment businesses, thus fostering In conclusion, research provides importance creating supportive investment, including open policies, terrorism. By doing so, continue accelerate its development