This research looks at how terrorism impacts direct investment (FDI) in Pakistan. The data used was collected up to 2015. A straightforward method was used to understand how terrorism and investment are related. This was done to ensure the results were clear and dependable. The study found that terrorism has an effect on foreign direct investment. When terrorist activities go up they create fear and uncertainty in the country. This makes foreign investors feel unsafe and hesitant to invest in Pakistan. Terrorism is bad for Pakistan. Foreign direct investment is crucial for a country’s growth. It brings in money creates jobs and supports development. Terrorism hurts the country’s image and makes investors less confident. As a result many investors choose to invest in countries instead of Pakistan. The study shows that reducing terrorism is key to attracting foreign investment. This can help improve Pakistan’s economy. Foreign direct investment and economic growth are important, for Pakistan. Reducing terrorism and attracting direct investment are crucial.

Keywords: Terrorism, Foreign Direct Investment (FDI), Pakistan.