The broad aim of the book is to show the parallel increase and decrease in the volume of FDI in telecommunication sector. It will also highlight the factors of decline of FDI in Pakistan Telecom Sector after 2008. Further an attempt has been made in the book to examine the impact of political violence (an extreme form of political instability) on foreign direct investment. For analysis secondary data has been used over the time period from 2001-2010. During 2001-10, particularly after joining the war on terror, the approach of the government of Pakistan towards foreign direct investment (FDI) in telecommunication sector was according to the model of political violence. In case of Pakistan, the political violence is graded on top, which affects the overall foreign investment, particularly the FDI in telecom sector was affected very badly by political violence (transnational terrorism).The violence includes suicide attacks, bombings, target killings and kidnapping. Unfortunately, the phenomenon of political instability in Pakistan has a frequent chain. The instability and frequent changes in the elected governments created an environment of uncertainty.