This study proposes to fill the gap in the literature available by examining the factor affecting the expansion of foreign banks in Pakistan. It takes an overview of the trends and dynamics of the activities of foreign banks in the economy. An investigation is made to explore the factors that motivate foreign banks for doing busi ness in Pakistan. Findings of the survey reveal the fact that profitability, trade financing, following the clients, diversifying the risk and market size are important factors for the presence of foreign banks in the country.
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