The aim of the study is to see the short-run as well as long-run association between foreign assistance and government spending in the case of Pakistan and to examine the direction of association between foreign assistance and government spending in Pakistan. The study is based on secondary data, which is taken from Pakistan economic surveys over the time span of more than 30 years. the study uses ARDL bound testing method and finds that there is a significant association between foreign economic assistance and government spending and it is concluded that private investment increase government spending because of provided opportunities due to private investors. Supervisor:- Mr. Omer Siddque