One of the important components of foreign capital is foreign aid that helps to address macroeconomic issues of recipient country. Macroeconomic disorders such as poverty and unemployment are tackled through foreign aid. Need of time is to evaluated the factors that affect the flow of foreign aid. Data of study was gathered from 1980 to 2019. Findings of study confirmed negative relationship of control of corruption on foreign aid. Likewise, negative relationship was found with political stability and government effectiveness with foreign aid. As a policy implication, government is to focus on settling down internal unrest on account of such governance indictors. It is so to gain more benefit from the same to overcome macroeconomic disorders.

Keywords: Foreign Aid, Political Stability, Control of Corruption, Government Effectiveness.