Pakistan offers dynamic opportunities for those who want to invest their money to get better returns. There are numerous categories of people who want to park their savings and money for high returns. The return on investment is somehow determined by the extent to you which you welcome risk. If you are a risk-taker, definitely higher the risk; higher the return but in contrast if you are risk-averse lower the risk, lower the return.
Businesses in Pakistan are evolving and new investors; local and international are exploring avenues to invest their money. Salaried individuals most often search for safe and less risky options such as, government bonds and national saving schemes. Whereas, businessmen and those with a surplus amount of large investment may seek riskier opportunities to get higher returns. Often those looking ahead to earn profits in the short term resort to speculative means of making returns which though can be very lucrative but you have to be well aware, well informed and proper analysis and research of whole scenarios such as, the stock market should be done.
Before exploring various options to invest your money, we must acknowledge the natural advantage offered by our homeland, Pakistan. The foremost important factor is the strategic location of Pakistan. Surrounded by developing countries in our neighborhood, Pakistan enjoys greater leverage to elevate the status of its economy by trade. Similarly, the four seasons enjoyed by us bring us the opportunity to cultivate a wide variety of items in our fertile lands. Rivers, canals, livestock, mineral-rich lands are the key to earn bright prospects. Many of our precious metals are unexplored and remain un-extracted residing beneath giant mountains.
Population growth which is almost 2% yearly is another good sign for the increased labor force in the country along with the initiatives adopted by the government to promote education and technical skills in all small towns and villages to eradicate illiteracy and counter unemployment. Youth in Pakistan make up a very significant segment of the population and therefore, present big opportunities for businesses to invest and acquire skilled young workforce from the labor market.
Pakistan is developing at an encouraging pace and middle class accounts for nearly 40% of the population. The rise of the middle class demands more product and services supply and also they are prepared to invest to seek better opportunities to improve their social status. This presents an opportunity for investors to meet the demand for products and services in return for better returns on investment.
Infrastructure was a big problem faced by Pakistan until recently, but with the initiative of the China-Pakistan economic corridor (CPEC) things have improved. New projects have been started across Pakistan to improve the transportation of goods and services. This allows the shipping industry to reap maximum benefit by striking deals with neighboring countries for the import and supply of their freights worldwide.
The government, in order to attract foreign investments, has granted many investment incentives to foreign investors. Automobile policy is one of its kind that allowed general relaxations to foreign automakers to invest in Pakistan and this has so far attracted dozens of companies and many have already started their operations thwarting monopoly of traditional few automakers in the country.
Due to recent economic uplifts, foreign investments have started to pour into Pakistan and this still requires sometimes bearing fruits. In the meantime, competition is very low in Pakistan and at the moment there is not a hardcore barrier to entry for any foreign firm to join the ranks of the market.
In Pakistan, there are a number of investment opportunities to reap maximum benefits from your investment. Among them the most favored avenues are:
- Stock investment
- Investment in bank and companies
- Real estate
- Forex (investment in foreign currencies)
- Bonds and national saving schemes
- Businesses/Partnerships (E-commerce, tourism, hospitality, IT, etc.)
- Mutual Funds
Details of each will be elaborated in the upcoming blog.