The study specifically focuses on the relationships between the growth of the gross domestic product, the tourist industry, global exchange usage, and the New Direct Hypothesis (FDI). All of these relationships have an effect on CO2 emissions. Pakistan's stance on environmental degradation is a sensitive topic. The evaluation employed the FMOLS DOLS and ARDL models to perform an analysis of verified data from 1980 to 2022. The results show that the relationship between the CO2 transitions and the GDP is nonlinear and negative. In any case, a significant factor influencing carbon dioxide emissions is the increase in gross domestic product and foreign direct investment. The amount of carbon dioxide emissions and the expansion of the gross domestic product have a U-shaped connection. Survey results indicate that CO2 emissions are unaffected by the expansion of the gross domestic product or by the use of foreign exchange. Only foreign direct investment (FDI), which has a negative effect, has an effect on CO2 emissions. The Gross Domestic Product, foreign direct investment, worldwide exchange, and carbon dioxide emissions are all unidirectional in their use, according to the Granger causality test. These results clarify the nebulous link between conventional types of corruption, monetary events, and Pakistan's use of the global exchange markets. It is projected that environmentally conscious development and foreign direct investment (FDI) would boost the use of international trade and meet regular administration goals. There is also hope that financial activity in the traveler region will lower CO2 emissions.