SUSTAINABLE U.S FOREIGN DIRECT INVESTMENT IN PAKISTAN: LEGAL FRAMEWORK, ENVIRONMENTAL REGULATIONS, AND GREEN ECONOMIC GROWTH PROSPECTS

Abstract

This paper explores how U.S. foreign direct investment (FDI) has contributed to sustainable economic growth in Pakistan, examining the legal framework, environmental regulations, and opportunities for green economic growth. With the global focus on environmental sustainability, foreign investments are now viewed as a key factor not only in economic development but also in advancing environmental objectives. The article discusses how the U.S. can support Pakistan's green transition by aligning FDI strategies with sustainable practices, emphasizing lawmaking processes and environmental policies that aim to manage these investments effectively. A thorough review of existing literature reveals a lack of understanding regarding the direct impact of U.S. FDI on Pakistan's green development, despite its significant potential. The paper identifies challenges within regulatory systems and governance, as well as the absence of strong incentives for green investments. Furthermore, it provides an in-depth analysis of how FDI can be better integrated into Pakistan’s green economic policies to promote long-term sustainable development. The article concludes with recommendations on improving the legal and institutional frameworks to make green FDI more effective in Pakistan.