The Impact of Foreign Direct Investment on Unemployment and Poverty in Pakistan

This thesis research covers the topic ‘The Impact of Foreign Direct Investment (FDI) on Unemployment and Poverty in Pakistan’. The study is a comprehensive analysis which discusses Pakistan’s economy in detail to provide an overview on unemployment and poverty of a struggling economy. It further highlights the important political events and major FDI’s made over years, gauging its effect on the unemployment and poverty with a sector and country wise breakdown of FDIs. The research is a mix of qualitative and quantitative analysis showing enough evidence that the FDI in Pakistan is not helping to remedy the existing issue of increasing poverty and unemployment. However, ironically a positive relationship is found between FDI and economic growth in Pakistan where two variables correlate significantly. Although there is a significant correlation between FDI and economic growth in Pakistan, the poverty and unemployment in the country have not improved due to inefficiency of the government.