THE DESTRUCTION OF GROSS DOMESTIC PRODUCT AND FOREIGN DIRECT INVESTMENT IN PAKISTAN: A CASE OF ECONOMIC DOWNFALL

Terrorism is one of the most disastrous problems being faced by Pakistan from decades. It has been continuously hollowing country's social and economic structure with great intensity and frequency. Poor law and order situation of Pakistan is hanging like a sword on its social and economic growth. Investors are afraid to invest in country due to unpredictable and horrible conditions disturbing economy at many fronts.GDP of Pakistan suffers the most from this chronic problem. The lucrative market of Pakistan is also depriving from the deserved foreign investment that comes in the form of Foreign Direct investment (FDI) inflow due to poor law and order situation and political instability prevailing in the country. The purpose of this study is to examine the impact of terrorism on GDP and FDI of Pakistan. The methodology adopted for study includes both descriptive and statistical procedures to check out the relationship in which we incorporated the data of last decade to get reliable results. The study will be significant to realize the negative and destructive impacts of the terrorism on country's economy thus it will lead the government to cope with it on more serious nodes.