- Overseas Investment in Pakistan
- Best Overseas Investment
- OPF_ Overseas Pakistani Foundation
- Overseas Enclave, Bahria Town Lahore
- Kingdom of Saudi Arabia’s Investment in Pakistan
- KSA Investment in Real Estate of Pakistan
- Best Return on Investment Opportunities in Pakistan
- 1Real Estate
- 2 Bank Deposits and Investment Companies
- 3 Stock Market
- 4 Foreign Exchange
Overseas investment is such investment that is done by a foreign investor in the local enterprises and assets of another country. Various large Multinational Companies are opening branches and expanding their investment in other countries. They strive to search out new opportunities for economic growth and diversification of investment portfolios. Pakistan’s economy is flourishing day by day and expanding at a steady pace.
According to recent reports, Pakistan is spending 5.2 billion dollars in the construction sector, accounting for 2% of the total GDP. During the last 5 years, there has seen tremendous growth in the real estate sector. Private housing developers have been very supportive. When it comes to investing, real estate is a priority. By investing in the right project at the right time you can double your return on investment. For instance, the value of real estate sold out at 30,000 dollars in 2008 is 100,000 in 2018, in Lahore.
OVERSEAS INVESTMENT IN PAKISTAN
Overseas investment in real estate can be a great way to diversify the investment portfolio and gain access to opportunities in developing countries. Moreover having an overseas property can even act as a second home sometimes. Foreigners who work and live in Pakistan can buy or rent properties or invest in Pakistani real estate. However, the government needs them to meet certain legal requirements with the Board of Investment and the Pakistan Trade Development Authority. Overseas investment in Pakistan is protected by the Constitution under Article No.24 as well as by specific laws. Further, Section 8 of the Protection of Economic Reforms Act 1992 offers legal protection to foreign investment in Pakistan.
According to a report, foreign direct investment in Pakistan averaged 158.61 USD million from 1997 to 2021, reaching the highest of 1262.90 USD million in June 2008 and a record low of -390.90 USD million in October 2018.
As we all know, Pakistan has a great strategic location which marks it as one of the countries which have immense potential for economic growth. It attracts many foreign investors and lenders who are interested in developing and maintaining business relations with Pakistan. Pakistan receives significant Foreign Direct Investment (FDI) from around the world, including Asia, Europe, the United States, Africa, and Australia. According to the World Bank’s Annual Report 2017-18, there are a total of 11,370 registered companies in Pakistan. These companies show a 37% increase over the previous year.
The government of Pakistan makes every effort to provide effortless ways to invest in property for overseas investment for Pakistanis living abroad. It has been observed that the graph is going up regarding overseas investment in the real estate market gradually. Moreover, with the advancement in technology, people became aware and engaged at the national as well as international level. For instance, with the escalating flow of social media in our lives, nothing is concealed from the public eye. Through YouTube videos, reviews on Facebook, and a series of pictures on the internet, you can virtually visit the land as well.
The potential overseas investors can find out every bit of detail concerning property investment in Pakistan while living in the comfort of their homes. However, do research thoroughly before deciding on the property you want to invest in. It is such a task that requires thorough research, so make sure to consult a sharp mind, good analytical expertise agent who can investigate any kind of fraudulent practice.
BEST OVERSEAS INVESTMENT
There are various options for overseas investment in Pakistan by the Pakistanis living abroad. Here are some of the major property investments specifically for overseas investors:
OPF_ Overseas Pakistani Foundation
One of the best investment options for the people living abroad is the Overseas Pakistani Foundation – OPF. It is a Housing Scheme in Lahore spread s over 2316 Kanals that is 3 km away from the famous Shaukat Khanum Memorial Hospital. There are 10 Marla Houses for Sale in the OPF Housing Scheme Lahore. The Property rates are varied from Rs. 1.9 crore to Rs. 2.25 crore.
Overseas Enclave, Bahria Town Lahore
The Overseas Enclave, Bahria Town Lahore is among the most popular blocks of Bahria Town Lahore. Its possession is sanctioned by the LDA (Lahore Development Authority). This block is entirely developed and state-of-art amenities, from basic to luxurious are available here. Overseas Enclave has been designed around the glittering scenery of the beautiful lake. Many families are already residing in the Overseas Enclave Block, but it is important to note that only those families buy the property that lives abroad.
Besides housing societies, there are varieties of commercial and residential projects in Pakistan for overseas investment as well.
KINGDOM OF SAUDI ARABIA’S INVESTMENT IN PAKISTAN
Saudi Arabia has an extensive account of providing financial assistance to Pakistan. For instance, it includes the transfer of funds through Pakistan’s Madrassa Education System, mitigating the effects of international sanctions following its nuclear test in the late 1990s, and includes lending 1.5 billion to Islamabad when the Pakistani rupee crashed in 2014.
The Prime Minister of Pakistan said during his speech on meeting with the Crown of Saudi Arabia MBS IN Islamabad, Pakistan, “Kingdom of Saudi Arabia is valuable to Pakistan as it has always been a great friend in need”. Previously Saudi Arabia’s de facto leader has announced an investment of over 20 billion dollars in Pakistani petrochemical, power generation, and mining projects.
Then again, the most recent round of investment makes at a critical time for Islamabad, which is in the midst of an economic crisis. The foreign exchange reserves that Pakistan uses to purchase major fuel imports have shrunk to less than 8 billion dollars.
Approximately ً8 billion dollars of the funds held by Pakistan have been reserved for the construction of an oil refinery at Gwadar Port, a jewel in the crown of the China-Pakistan Economic Corridor and an area in which Saudi Arabia’s Gulf neighbour U.A.E has also invested. Beijing is ready to invest about ً 62 billion in economic corridors under its International Belt and Road Initiative, and Saudi Arabia stands to expand its oil export market to Pakistan.
Moreover, Saudi Pak Investment is an exemplary landmark of overseas investment in Pakistan by Saudi Arabia. It is a High Rise building comprised of twenty stories in Islamabad renowned as Saudi Pak Tower. This high-rise building is completely owned by tenants, including a number of national and multinational companies, telecommunication companies, financial institutions, and hospital service concerns. It makes every effort to provide growth in the business of Pakistan. It provides a complete variety of financial products and services as well, such as term certificates, project finance, leasing facilities, and working capital loans.
KSA Investment in Real Estate of Pakistan
Pakistan’s real estate industry is full of lucrative and cost-effective investment opportunities. Whether you want to buy a property or a house for sale, or want to invest in a commercial project for capital gain purposes, there is a definite chance of getting a high profit. Further, you will get an instant return on investment to protect your future economically.
Recently, an engineering and construction firm, based in Riyadh has signed an agreement with a Pakistani business consortium in the eastern city of Lahore to invest in a 12 billion dollars real estate project. A Memorandum of Understanding (MOU) was signed in Karachi between Sarh Attqnia Company (SAC) and Pakistan Party, Javedan Corporation under which construction of the first phase of the forthcoming ‘Ravi City’ project will be carried out on 2000 acres of land along the edges of the historic river Ravi. According to Ravi Urban Development Authority (RUDA), the total project worth is around 12billion dollars.
BEST INVESTMENT OPPORTUNITIES IN PAKISTAN
Pakistan has great potential for local investors as well as for overseas investors. Many people are unaware that there are many other ways to invest in Pakistan besides the commonly known ways like stock exchange, property, and mutual funds. Let’s take a look at some of the key investment pathways that people have an amazing ability to invest in.
One of the most famous and secure investment opportunities in Pakistan is real estate. Although most people are aware of this investment option and its potential, we would like to mention it because it is very profitable. Investing in real estate is a wise option but it is not a viable option for every investor because large sums of money are required to purchase real estate, which is why it is a student or low investment. Not suitable for people with lower investment amounts.
The best thing about investing in real estate in Pakistan is that it is a safe investment option. You get full ownership of the property and most importantly the land is an asset whose value is always increasing. Furthermore, the real estate market is recovering at an increasing rate. This means that you can expect higher profits and wider scope in real estate.
Bank Deposits and Investment Companies
Bank deposits are one of the most common savings options and investing in the companies is the cheapest business opportunity with low investment. Do some research; choose the bank that works the best. Then start your venture by opening a bank account and depositing a small amount in it. Banks usually offer 10-12% annual profits. Though, many people do not know what kind of account they need so that they can not only save but also make a profit.
If you have a bank account that you have opened to receive your salary, receive education funds from your family, or something similar, then your current account chances are high. If you want to make a profit from your savings in a bank account, you need to open a savings account. Besides, a number of investment companies that are making high profits in Pakistan offer high returns, such as Lexon Investments, PMIC, etc.
A stock market is a place where companies list their shares to make a wide range of investors available to buy those shares. You, as an investor, have the option to choose from a variety of stocks of different companies to buy to build your investment portfolio. The price of shares listed on the stock exchange fluctuates according to the transaction of purchase and sale.
Investing in the stock market is one of the best investment opportunities in Pakistan. If you do not have enough knowledge of investing in the stock market, then make sure to get the services of a broker. The average return on the stock in Pakistan is usually 10%. This means that if you invest Rs.1000 is in the stock market, it will give you Rs.1100 after some time, and sometimes within hours.
One of the largest and most liquid markets is the Foreign Exchange Market. Investing in foreign exchange is a great option to expand your portfolio. Investing in foreign currency is more difficult than investing in trading stocks, mutual funds, bonds, or other ways in the local market.
It is concluded that Pakistan is gradually performing well in business and a major improvement can be observed in a positive role in undertaking Pakistan’s business at the national and international level. However, there is still much to be accomplished to attract more overseas investment in the real estate market, which is one of the major lucrative industries in Pakistan. Therefore, the government of Pakistan should consider effective measures to make more overseas investments in the real estate of Pakistan.