Proceedings of 7th Annual American Business Research Conference 23 - 24 July 2015, Sheraton LaGuardia East Hotel, New York, USA, ISBN: 978-1-922069-79-5 Impact Investing in South Asia (India and Pakistan): Importance, Identification of Real Issues and Solutions Khurram Hussain Social and environmental issues have emerged as the biggest challenges faced by the nd th 2 and 6 largest populations of the world inhabitant of India and Pakistan respectively. This article emphasizes the need and points out the importance of impact investing in these countries. According to this research study prominent linkages amongst social reforms, environmental changes and financial investments have been identified. It has been established that mere return in form of capital is not enough as a result of an investment. Unless an improvement in the plight of a common man is not observed, there would be no durable prosperity. Social and environmental benefits are so vital in this region that will not only upgrade the quality of life but it will support the national economic system as well. In this study real issues posed by domestic and foreign investors have been highlighted. As a solution it has been suggested that a three way strong link amongst the investors who are willing to make impact investing, who have already invested and the investors who do not comprehend the return on it must be established. It is possible if public and private sectors join together to achieve the goal. Track: Finance Period of Study: This study is based on data available since year 2000 and includes key variables that play pivotal role in determination of measurable financial impacts on common people life in India and Pakistan. Findings: Phenomenal returns of impact investing specifically in the areas of education, healthcare, nutrition, environment, infrastructure and microfinance have been projected in accordance with proper planning and decision making. _______________________________________________________ Mr. Khurram Hussain, Institution: International School of Management, Mailing Address: 555 Palmer Circle, Dickson City PA 18519 USA, Email: khb2012@gmail.com