Cross-Country Comparative Analysis of the Impact of FDI on Pakistan’s Economy

Abstract

Foreign Direct Investment (FDI) plays a pivotal role in economic development by providing capital, technology transfer, and job creation. In Pakistan, FDI has fluctuated due to macroeconomic instability, inconsistent policies, and external economic trends. This study examines historical trends, sectoral contributions, and macroeconomic challenges related to FDI in Pakistan, comparing its performance with India and Malaysia. Using data from the World Bank, UNCTAD, IMF, ADB, and Financial Times, this paper highlights the opportunities and barriers to FDI-driven growth and provides policy recommendations to enhance investment inflows.