A study was conducted back in 2016 to determine the impact of foreign direct investment (FDI) on unemployment level in Pakistan. The results of the study suggested that there is a negative relationship between FDI and unemployment in case of Pakistan. This shows that if FDI increases then unemployment in Pakistan would be reduced but this reduction is so small to be considered as significant! The study was conducted on the basis of the data of past 50 years(1975-2015) from World Bank’s authentic source. Different controled variables like population, industrial growth and agricultural growth were taken into account.

The study suggested that FDI is not significantly related to unemployment in Pakistan so we should focus on some other ways to reduce the unemployment rather than FDI only. We may reduce the unemployment by increasing the industrial growth and more manpower preparation through trainings and education to the people as the results of study also suggest the significant negative relationship between Unemployment, Industrial growth and population Growth.