Foreign direct investments the money invested by
people or corporate entities of country in another country.
This investment also involves transfer of technology, skill
and equipment.FDI became consider ably visible after
trade liberalization in the wake of world trade
organization. WTO came into being on firs tJanuary 1995
succeeding GATT. Nation States signed the document and
relaxed their protectionist policies and introduced free
trade. They reduced Tariffs to low level. The newly
industrialized countries (NICs) and least developed
countries (LDCs)removed trade barriers and offered best
possible incentives to let FDI come in. Pakistan is one of
the Emerging Markets for FDI .It has tremendous
potentials in a number of sectors to absorb foreign direct
investment for decades in future. An Islamic preview
questions the legitimacy of FDI and its effects on Islamic
states. This research paper briefly introduce various
aspects of FDI.