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ocess of economic development. The study also takes part on the foreign investment policy. Countries are attracting the foreign direct investment countries using a regressive rules and regulation in order to including tax concessions, financial incentives, import duty exceptions, and infrastructure and training subsidies. Such policies however do not guarantee realization of the potential benefits of FDI that go beyond the “capital” FDI transfers to the host country. Economic variable are based on multi fixation. It is also necessary to analyze the complete gist of the problem.

Statement of the Problem

In Pakistan the unemployment and the economic development is consider as a main dilemma the economy is suffering since Pakistan made. In the way increasing employment and the economic development Pakistan like other developing countries often believe foreign affiliation investment as a source of rapid growth. In this circumstance people of Pakistan also prefer working in a multinational firm rather than as an entrepreneur of the own business. Whereas developed countries also export labor intensive work to under developed countries like Pakistan. Skilled and high professional from Pakistan also migrated to developed countries because of lack of skilled jobs in the labor market. The impact of the foreign affiliation investment in the Pakistan economy is one of the reasons to analyze the dynamics of the employment structure.

Employment in a country is depending upon the capital populated in an economy. Shortage of capital is specifically populated in developing countries that lead to unemployment. Developing countries find the easiest and rapid solution for unemployment is the foreign direct investment. Unemployment in developing countries including Pakistan has distinctive contradiction features. Unemployment in any country has a wide range of effects. When in a country the unemployment rate increases the whole economy suffers. Unemployed workers and worker’s families suffer loses as well as in broad prospective whole country also experience loses. To evaluate the scenario let’s consider both point of view. In the unemployed person point of view unemployed workers lose wages as well as worker’s family lose source of income. In the country point of view the country loses the goods and services that can be produce by that unemployed worker. The most important aspect is that the manifold effect the purchasing power of the unemployed worker is lost, which can go ahead to joblessness for yet other workforce.

Objective

The purpose of the study is to find out the relationship and the impact of the foreign direct investment on the economic development particularly the employment level and other forms of employment. The study has several objectives to explore the relationship of the following variables.

The employment and the foreign direct investment

The labor intensive job market and the foreign direct investment

The managerial job market and the foreign direct interments

The GDP and the foreign direct investment

The GDP and the employment.

thesis structure

The structure of this study is to find out the impact of the foreign direct investment on the employment level, labor intensive jobs, managerial jobs and the gross domestic product. T