Abstract

The main objective of the is study is to find out the impact of foreign direct investment on the economic development of central Asia, Afghanistan and Pakistan particular. For this research we have collected the data from the secondary source. The study was showing that the inflows of FDI are increasing in some countries. In 1992 the inflows of FDI of Pakistan was 258.43 US dollar, at that time the inflows of Afghanistan was nothing. In the year 2007 it was concluded that inflows of Pakistan was us $4374 million during the 2007 the inflows level in Afghanistan was US$ 289.in this paper it has concluded that the most profitable area are power sector, telecom, education and information technology. Thus, our paper is trying to prove that FDI has main role for the development of welfare with the way of providing the welfare society. Therefore, the study is trying to suggest that for the enhancement of FDI government of Pakistan and Afghanistan need to remove the political instability and terrorism and should focus on the physical infrastructure

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