Pakistan’s foreign direct investment (FDI) has been a topic of discussion for many years, with the government attempting to attract investors to boost the country’s economy. However, despite these efforts, FDI in Pakistan remains low. The country’s FDI has been declining over the past few years, with a significant drop in the last fiscal year. This decline is attributed to various factors, including the country’s security situation, corruption, and bureaucratic red tape. The government has introduced several policies to attract investors, including tax incentives and investment-friendly regulations. Nevertheless, these efforts have not yielded the desired results. One of the main reasons for the low FDI is the lack of confidence among investors due to the country’s unstable political and economic environment. Additionally, the country’s infrastructure, including its transportation and energy sectors, is in dire need of improvement. The government has also been criticized for its inability to provide a conducive business environment, with many investors citing corruption and bureaucratic hurdles as major obstacles. Furthermore, the country’s regulatory framework is often unclear and inconsistent, making it difficult for investors to navigate. The government has also been slow to implement reforms, which has further deterred investors. In recent years, Pakistan has seen a significant increase in Chinese investment, particularly in the China-Pakistan Economic Corridor (CPEC) project. However, this investment has been largely limited to the energy and infrastructure sectors, with little investment in other sectors such as manufacturing and services. The government has also been criticized for its lack of transparency in dealing with foreign investors, with many investors complaining about the lack of information and unclear procedures. To attract more FDI, the government needs to address these issues and provide a more conducive business environment. This includes improving the country’s infrastructure, reducing corruption and bureaucratic red tape, and providing more transparency and clarity in its regulatory framework. The government also needs to promote Pakistan as a viable investment destination, highlighting its strategic location and potential for growth. Moreover, the government should focus on developing its human capital, including providing training and education to its workforce, to make it more attractive to investors. The country’s private sector also needs to play a more active role in promoting investment, including providing support to foreign investors and helping to facilitate their entry into the market. Overall, while the government has made some efforts to attract FDI, more needs to be done to address the underlying issues and provide a more conducive business environment.