Introduction: Foreign direct investment, or FDI, is a type of investment that involves the injection of foreign funds into a company that operates in a country of origin different from that of the investor” (business intelligence). The determinants of foreign direct investment can be socio-economic, financial and cultural factors which generally have a positive and negative effect on foreign direct investment. The risk is linked to the determinants of foreign direct investment. This article examines the main determinants of foreign direct investment exchange rate, market size, political instability, infrastructure, market openness and military rule. Data constraints in Pakistan, some determinants are considered ineffective. Regardless, many determinants like infrastructure have a positive impact on FDI. Rehman et al (2010). GDP has a positive relationship with FDI. Khan and Nawaz (2010). While Anjum and Nishat find the positive relationship between exchange rate and foreign direct investment. Akthar discovered the negative impact of political instability and military rule. Due to lack of data, political instability is considered ineffective. He also found that market openness is positively related to FDI. The main objective of the article is to examine the relationship between the determinants of foreign direct investment and to analyze the determinants of foreign direct investment and their importance. Akthar (2000) explores the determinants of location with reference to Pakistan. It uses the multivariate regression technique to determine the determinants. It uses market size (openness to trade), relative interest rates and exchange rate, political instability...... middle of article...... Nawaz Atif Muhammad (2010 ) “Economic determinants of foreign direct investment in Pakistan” Journal of Economics: 99-104 (2010) Saeed Nazir (2001) “An Economic Analysis of Foreign Direct Investment and its impact on trade and Growth in Pakistan” Thesis submitted to Islamia Bahawalpur University. Aqeel Anjum and Nishat Mohmad “The determinants of foreign direct investment in Pakistan” The Pakistan Development Review 43: 4 Part II (Winter 2004) pp. 651–664 Dar, A. Humayun. , Presley.R.John Malik.H.Shahid (2003) Determinants of FDI inflows to Pakistan (1970-2002) unpublished, Loughborough University, United Kingdom www.economywatch.com/foreign-direct-investment/definition. html Holland Dawn and Pain Nigel “The determinants and impact of foreign direct investment in transition economies: a panel data analysis” National Institute of Economic and Social Research