The purpose of this project is to identify and analysis the ways of increasing the volume of FDI in Pakistan. The whole work consists of two different approaches. The first approach is the identification of the main barrier to invest in Pakistan. In this section, the researcher is looking for the reasons why Pakistan is not making full use of its investment potential. Is it because of the ineffectiveness of Government promotion and facilitation or because of a difficult investment? Can the political and economic situation be considered stable in Pakistan? Does the inefficiency of the legal system establish negative impacts on the investment climate of Pakistan? What is the level of corrupt bureaucracy, and security situation and how does Pakistan take to improve the investment climate in the country? On the basis of such analysis, the researcher makes recommendations to Pakistan on how it can reduce the barriers to increased inward FDI volume.