The inflows of capital help to finance a current account deficit. (Basically, this means that foreign investment enables developing countries to buy imports.)

MNCs provide employment also may help improve infrastructure in the economy. They may improve the skills of their workforce. Foreign investment may stimulate spending in infrastructure such as roads and transport. These firms help to diversify the economy away from relying on primary products and agriculture – which are often subject to volatile prices and supply.

However, there many external costs, they can outsource parts of the production process to developing economies with weaker environmental legislation. For example, there is a trade in rubbish, which gets sent to developing economies like India for disposal and recycling.

Profit repatriated. Although they invest in developing economies, the profit is repatriated to the location of the multinational, so the net capital inflows are less than they seem.

Skilled labour. When undertaking new projects, the multinational may have to employ skilled labour from other economies and not the developing economy. This means best jobs are not received by local workers and the investment is diffused.

Raw materials. A large component of multinational investment in developing economies is seeking out raw materials – oil, diamonds, rubber and precious metals. The extraction of raw materials can cause environmental externalities – polluted rivers, loss of natural landscape. Also, there is only a short-term inflow of money to pay for the materials. 

On the other hand, it is not all one way. Chinese companies have built new roads and railways in Africa to gain better access to raw materials in Central Africa. This infrastructure investment will leave a long-term legacy – even if firms leave Africa.

Sweat-shop labour. Not all economists are convinced sweat-shop labour is a good thing weak labour conditions allow MNCs to use their monopsony power and pay lower wages to workers than they should get paid.

to country and the impact of MNCs is not always desirable. However, economic growth

and industrialization trigger globalized world that enables MNCs to become a useful tool

for economic growth.

There are positive and negative impacts of MNC's

Positive impacts
1.  Export-based   Industrialization: Building   export capacity is very

important for developing countries if they want to benefit fully from international trade

and investment opportunities.
2. Capital  Formation: Capital   represents  an  essential   economic   asset   in

developing countries.  A significant   benefit of MNCs  is their injection  of  capital into a

developing country, bringing financial resources otherwise unavailable through their own

capital and access to international capital markets.

:)

A huge domestic market with a population of 207 million, a decreasing level of poverty, a stronger middle class and a vibrant demographics

An inexpensive and abundant workforce

High GDP growth in recent years (5.2% in 2017)

In recent years, the government has pursued a FDI attraction policy with numerous privatisations, the guarantee of equal treatment between foreign and local investors and a whole series of tax incentives. It has also made some necessary efforts in terms of economic reform.

The country has financial and logistical support from the United States and the IMF.

Weak Points

The main obstacles to the economic development of the country are:

A significant security threat against foreign interests in Pakistan (especially those from the US and Western countries), coming from terrorist organizations

Security is difficult to ensure because of rising social protests since the summer of 2014 and tensions at the border with Afghanistan.

A high degree of corruption, particularly with regard to government procurement, international contracts and the tax system. Pakistan has not signed the OECD Anti-Corruption Convention.

Low fiscal resources with poor prospects for development due to the continuing importance of the informal economy

High vulnerability to natural disasters and their negative impact on the country's agriculture