Feudalism: In rural areas, feudal not only have huge wealth but also have unlimited power. Their area power is another state in a bigger state. Their rein continues in perpetuity from one generation to another.
Law and Order Situation: Law and order situation in Pakistan has been very poor especially in a large metropolitan and hub of trading city like Karachi. Law and Order is essential for the Foreign Direct Investment. Deteriorated law and order situation not only affects trading and business activities but also creates a lot of fear and disappointment on the part of investors and businessmen.
Political Instability: Political instability has been Pakistan's worst political problem. Governments change every 2nd year. There is no consistency of policies. The projects of former government are abandoned by the later government and the money and time involved in that project goes wasted.
Corruption: Corruption in political circles is one very common thing in Pakistan. Pakistan one ranked second on corruption. Financial resources both from foreign aid and loans and from domestic loans go into the hands of corrupt leaders and the whole nation has to suffer.
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