Over the last four decades, governance and foreign aid have been discussed widely by economists. Both variables play a crucial role in deﬁning the economic prosperity in low-income countries. Pakistan is receiving assistance in the form of aid and has become a victim of bad quality of governance. There is an abrupt need to look for all those hidden variables that are the root causes of failure to get our desired sustainable development goal through the quality of governance and foreign aid. This webinar explores the aid dependency eﬀect on government in our country. Foreign aid is also an income key source in Pakistan, like other developing countries. International leading ﬁnancial institutions, notably the World Bank, the International Monetary Fund (IMF), etc., emphasize corruption issues and mainly on governance in low-income or developing countries.