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Aug 27, 2012

Investment Opportunities in Pakistan for Public


Savings of Common Pakistanis

Many people are seeking advice on what are some good investment opportunities in Pakistan. Some of them soon or later deposit their hard earned money in bank or put it in some type of saving schemes e.g National Saving Schemes, Prize Bonds or Insurance Policies. Though all of these looks very attractive at first but have not much real potential. These saving schemes shows big numbers in terms of profits but when you take into account the decrease rate in the Pakistani Currency Value you will find that you will only get big figures but less value. 

Moreover banks and most of other financial organizations works on interest system (سودی نظام) and give profits gained from interests / mark-up which is not allowed to Muslims. So always try to find investment options which are safe and permitted in Islam.

This post is written for general public; an employee, a housewife, a retired government servant, a small business owner or other common people and not for business tycoons and big investors. These common men intends to invest their savings in such a way that can not only give them reliable and stable profits but also must be safe because they don't want to loose their money in the greed of profit. 

Investment Opportunities in Pakistan
Investment Opportunities in Pakistan

Investment Opportunities in Pakistan for Public

So the question is if Saving Schemes and Bank Profits are not as much advantageous as they seem then what is the right way to invest your money. Below we will state some investment options. Though we will give you only hints and will not elaborate these in details. If you are interested in any of these, you have to further learn its basics and pro/ cons on your own. You can search internet to read further details about any of these. Please also note that none of these options is 100% safe and we can not guarantee of any of these. Investments also have risks.

Some investments are long term and some are short term. Long Term Investments are profitable and beneficial only if done for longer periods of time while short term  investments can give you profits in shorter times generally.

Following are the opportunities in Pakistan. We tried to list only those investment ideas which are Halal.
  1. Real Estate and Property
  2. Buying and Selling of Gold (as the rate is continuously increasing from many decades)
  3. Mutual Funds
  4. Shares (These are risky for a newbie.   So please learn alot before investing in Stock Exchange. It is also worth mentioning that some religious scholars also forbid trading bank shares.)
  5. Commodity Trading (buying and selling of gold, silver, crude oil, rice, sugar, wheat and other products). It usually involves a third party which manages trading on behalf of you.
  6. Buying and Selling of Vehicles and Bikes after refurbishing and maintenance
  7. Investing in a local business which requires investments but ensure written agreement with owner.
  8. Another option is to support someone preferably one of your unemployed friends or relatives to establish business. You will act as sleeping partner or investor while the other will be working partner. In this business model, you will not only help others to earn their livelihoods but will also earn an handsome amount as profit. But agreement is also necessary for this.

Give Your Feedback

Please give your feedback if you like any of the above business idea or if you have any suggestion or recommendation please share via your comments.

Aug 1, 2012

We need Hundreds of "Pakistan 100"


The effects of local information environment on the investment decisions of Multinational corporations are of fundamental importance. The information released by various sources in a country should be reliable and authentic so as to give a realistic view of a country’s economy and investment opportunities to the investors.

Pakistan 100 Fast Growing Companies
Pakistan 100 Fast Growing Companies

One such realistic view was given in March 2012 by “AllWorld Network”. The aim of AllWorld Network is to "find and scale ALL the growth entrepreneurs of the emerging world by creating the largest information system and network of growth entrepreneurs". Every year, AllWorld publishes a ranking of fastest growing private companies based on their revenue growth. In March 2012, they released PAKISTAN 100, ranking of the 100 fastest growing private companies in Pakistan. Among these 100 companies, 87 reached AllWorld’s international standard for competitive fast growth companies, and 12 “start-ups to watch” that tend to be younger but have strong growth prospects that will enable them to meet the criteria in the near future. AllWorld is an international ranking agency but need of the hour is to develop our own ranking system based on fair and anti prejudice mechanism  for ranking companies. Such ranking systems not only present a positive picture of a country but also open channels for Foreign Direct Investment. It also shows those areas of economy which not only generate high revenues but also attract investors. CEO’s of most of the companies in Pakistan 100 have plans to start other businesses. Almost all types of businesses in Pakistan face the problems of political instability, lack of help by government sector and red tape-ism. But picture shown by Pakistan 100 is really helpful. A report on Pakistan 100 shows that construction and engineering so far has been the most revenue generating industry followed by agriculture and mining.

Some local sources are also portraying picture of investment atmosphere in Pakistan for the overseas investors. A big name in this regard is “The Board of Investment Pakistan”.  It aims at the promotion of investment in all the sectors of Pakistan’s economy and facilitation of overseas investors for quick materialization of their projects and thus increases the global competitiveness of Pakistan. BOI also spreads information about the opportunities for investment and joint venture possibilities. A heading that immediately catches attention at the board’s website is “Pakistan an Investor friendly Heaven” and content under heading justifies that really well. 

There are several advantages of on-line communication as it provides instant access and availability of up-to-date information. Investors look at the company Web site for the information. Internet is a main source of providing information but authenticity and reliability is something that can be questioned. is another source of information for the investors. A section of this site contains success stories about the joint ventures and huge profits that foreign companies create by making an investment in Pakistan. Such examples are evidence that choosing right sector for investment will render good return. 

Another important contribution towards the provision of information to foreign companies is by organizing conferences. Pakistan Investment Promotion Conference is one such gathering to develop awareness among foreign investors about the veiled investment opportunities in Pakistan. 
Of all the sources of information discussed above, in my view “Pakistan 100” is the best. It not only ranks the companies but also gives them a worldwide recognition. It also figured out bottlenecks in the way of investment. Along with international rankings, Pakistan must develop its own independent sources for publicizing investment opportunities and ranking various sectors and also make arrangements for these sources to be recognized globally. Several examples are present that can be followed and Fortune 500 is one such example. Pakistan has potential to boost its foreign reserves by improving its current information environment and devising new ways to highlight the effective functioning of various sectors of its economy.

Written By:
Tehreem Junaid

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