The Effect of Foreign Direct Investment in Postal and Courier Services on the Economic Growth of Pakistan Muhammad Tariq ∗ , Shahid Jan, ∗∗ Fazli Qadir, ∗∗∗ and Irfan Ullah ∗∗∗∗ Abstract Previous studies were limited to analyze the relationship between foreign direct investment and economic growth of Pakistan. The present study is making addition to the literature by analyzing the relationship foreign direct investment inflows in the Postal and Courier Services and economic growth of Pakistan. The time period of the study is from 2005 to 2015. Ordinary least squares, Granger Causality test and Vector Auto regression has been applied for estimating the study results. The main findings of the study show that foreign direct investment inflows in the postal and courier services put a positive and significant and positive impact on the economic growth of Pakistan. The Granger Causality test shows a one directional relationship between the foreign direct investment inflows in postal and courier and economic growth. The VAR test results also supported the overall results. These findings show that foreign direct investment in postal and courier services is also an important indicator of the economic growth of Pakistan. Keywords: Foreign Direct Investment, Postal and courier services, Granger Causality test. Introduction The postal and courier service is considered a compulsory part of the daily lives all over the world. Even with the development of the digital and electronic age the significance of the postal service cannot be underestimated, which is facilitating the lives of millions of people by providing them the most easy and accessible means of ∗ Dr. Muhammad Tariq, Assistant Professor, Department of Economics, Abdul Wali Khan University, Mardan. ∗∗ Dr. Shahid Jan, Associate Professor, Department of Management Sciences, Islamia College University, Peshawar. ∗∗∗ Fazli Qadir, Ph.D Scholar, Preston University, Islamabad Campus ∗∗∗∗ Irfan Ullah, MS Scholar, Department of Economics, Abdul Wali Khan University, Mardan