This study empirically analyzes the nexus/link between economic policies and investment in Pakistan. It is observed that over the years the country has been confronted with multiple policy changes such as nationalization, denationalization, privatization, etc. coupled with political instability. It is noted that these frequent policy changes have a significant bearing on investment in Pakistan. The findings reveal that increase in GDP, denationalization and financial development are beneficial for investment flows while a higher cost of capital negatively affects the investment level in Pakistan.
Keywords: Public Investment, Private Domestic Investment, Foreign Direct Investment, Investment Policy, Nationalization, Privatization, Pakistan