What do you mean by that? If you're website is for the Pakistani market than hosting it on a server in Pakistan should be a good idea - if it's a reliable hosting company (which I can't tell, but you probably can).

When it comes to hosting in the targeted country or not hosting in the targeted country nobody says that hosting in it can be bad.

The only thing about which there seems to be some confusion is whether it does help or not.

Maybe one of the other moderators knows something about this? Maybe Pakistan is a country where a lot of spam sites are hosted or something like that? In that case, it might not be a good idea to host there even though it could give a local benefit?!