Navigating Foreign Direct Investment in Pakistan: Opportunities, Obstacles, And the Critical Role of Financial Transparency

Abstract

This study digs into what really drives Foreign Direct Investment (FDI) in Pakistan. It looks at things like economic growth, job creation, political stability, financial transparency, and the hurdles companies face with regulations. Researchers surveyed 130 company managers across Pakistan, asking how they see FDI shaping their investment choices. The results are pretty clear. Managers see economic growth and job creation as the biggest wins from FDI—economic growth scored an average of 4.32, while job creation came in at 4.12. When it comes to what builds investor confidence, political stability (4.20) and especially financial transparency (4.61) matter most. But there’s a flip side: corruption (4.23) and regulatory gaps (4.58) stand out as serious roadblocks. These issues make it tough to achieve real transparency and pull in more foreign investment. When you stack these findings up against international research, the message is the same everywhere: investors want clear financial reporting, stable politics, and straightforward, supportive policies. The takeaway? If Pakistan really wants to unlock more FDI and boost its long-term economic growth, it needs to tackle corruption head-on, tighten up its regulatory systems, and make financial transparency a top priority.