摘要：In this research article we have analyzed the role of Foreign Direct Investment and trade on growth of Pakistan economy by estimating the simple least square method. The variables included in this study are; GDP growth rate, GNP growth rate, FDI, trade of goods and services, employment, exchange rate, consumer price index, openness factor, BOP, GDP deflator, and GNP deflator. The data used in this paper is secondary, since it relates economic indicators; it is easily gathered from state bank of Pakistan, Pakistan economic survey and board of investment. The time period used in this research article is from 1990 -2008 and all the data are on annual basis. Foreign direct investment and growth of economy have strong positive association, which is the most important finding of the study. Further we found that FDI and GDP have a strong positive association. The relationship between FDI and inflation is positive; however this association is not very strong
关键词：Foreign Direct Investment; GDP; Inflation; Economic Growth.
