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This article examined the influence of FDI on the stock returns of the Pakistan market. Pakistan is an emerging economy of Asia and has attracted good FDI. The study used secondary data that has been taken from different reliable sources. The data for FDI is taken from Pakistan Statistical bureau and for the data of stock returns, we used yahoo Finance. The data has been collected from 2005 till 2914. After employing the regression analysis, we noticed that there is a positive association between stock returns and FDI in the case of Pakistan. This study facilitates the policymakers of how the foreign direct investment for the development of the emerging country like Pakistan. This is the reason that Pakistan is attracting more and more FDI by offering flexible policies.