The goal to conduct this study was finding the empirical evidence about the relationship between growth of economy, foreign direct investment, tax revenues and inflation. Data from 1980 to 2018 was analyzed using ADF test for Stationarity, ARDL test for co- integration and ECM to check the short term behavior of the variables. Empirical findings show the positive association of FDI with growth in short run and negative yet insignificant relationship in the long run. Inflation was insignificantly correlated in shorter time span but was effecting economic development significantly and negatively in longer time span. Tax revenues were founded to be having negative correlation with the growth of economy. Study suggests putting less focus on FDI and more on domestic resources and to policy makers to avoid tax and inflation oriented policies.

Keywords: Foreign Direct Investment, Economic Growth, Taxation, Inflation,