Political instability, security issues, high interest rates, and poor infrastructure have discouraged foreign investment in Pakistan. However, the China-Pakistan Economic Corridor project has increased interest from other countries in investing in Pakistan due to the potential for economic growth. While CPEC and improved security are positive developments, issues like rising costs of doing business, dependence on oil and gas, and lack of technological advancement still present challenges for new and existing businesses in Pakistan. Effective government policies are needed to address these economic and environmental factors in order to attract more foreign investment and expand business opportunities.