Abstract
Foreign direct investment (FDI), as a primary form of contemporary capital globalization, contributes substantially to a nation’s economic growth. Specifically, in China’s FDI initiative in Pakistan, channeling FDI towards renewable energy projects can alleviate Pakistan’s energy deficit and generate extensive economic advantages for the country. This paper examines the effects of FDI in renewable energy on Pakistan, analyzing the country’s location advantage and renewable energy potential, evaluating changes in GDP resulting from China’s investment in renewable energy projects in Pakistan, and identifying economic benefits of FDI. Additionally, this paper summarizes notable renewable energy projects and their development after inflow of FDI from China. The research provides in-depth information on the fundamental components of the projects. Additionally, the paper examines the effects of FDI in renewable energy on Pakistan’s immediate and long-term economic development. The results provide insights on suitable countries for receiving FDI and the impacts both inflow and outflow nations.
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