Why Overseas Pakistanis invest in Pakistan.
By: Tarique Khan Javed
President, Overseas Pakistani Investors Forum.
                           Dated 04 Nov 2008

Challenge and response:
Since the start of mortgage lending financial crisis, large amount of money has flown out of Pakistan. Most of the funds were from Pakistanis while Foreign Investors in Equity Market also took out USD 2.3 billion, by selling their stocks. More outflows are awaited following defreezing of the Equity market. Most outflows from resident Pakistanis where to Dubai, where some DH 200 million, was reportedly invested.

The response to the challenge from Overseas Pakistani was just the opposite. They sent in a record USD 600 million in September 2008 alone while cumulative remittance for a year again reached a record USD 6 billion. Hats off to the 6 million Overseas Pakistan who never stop supporting the Country come what may.

We Overseas Pakistani after staying for long period away from motherland, and mixing with people like the Palestinians, who do not have a country, appreciate what being Pakistani means more than others.

Besides the emotional arguments there are some solid pragmatic and pure economic reasons why we invest in Pakistan.

In top 10 leagues by 2050:
It is our considered opinion that Pakistan will emerge as one of the top ten economies of the world within the next 40-50 years. The main reason for that is the presence on 100 million young people in the country. After China and India we are in line to be exploited by the Multinationals of the World, who are always on the look out for cheaper manufacturing base.

China a die hard communist country choose to create completely “Free Economic Zones” with a license to exploit its excessive work force as the employers wants. Overseas Chinese rushed to help their poor countryman and invested heavily in these Zones to turn China into an Economic Giant as it has emerged today. With a reserve of USD 1.8 trillion China is in the most comfortable position in the world.  

India with the help of Internet based software business and other businesses mostly started by Overseas Indian is also advancing rapidly and is one of the least effected countries from the current financial crisis.

Pakistan has lagged behind due to a negative way of thinking which assumes that foreign investment is not good for us and only good for the investors. It also has a negative image problem which does not allow potential investor to even visit the country.

Reluctant Investors:
We Overseas Pakistani try very hard to convince friends and investors that the image depicted by media is misleading because the vast country is most peaceful for

the bulk of the area and there are only few trouble spots. Besides its people are very friendly and hospitable contrary to the hostile image projected.  While others are not convinced we try to invest every penny we save in Pakistan to create job and help our countryman.

After 9/11 small number of Arab and Gulf Cos have invested in Pakistan, however the Cos who really matter are keeping aloof. Some how we have to lure them to our land to see a rapid transformation of the country. If the Multinationals come to Pakistan in full force Poverty in the Country will vanish within 20-30 years.

It is funny that the root cause of all our trouble is poverty. It is the same poverty which leads to violence and does not allow foreign investment come in. It is a circular argument.

Hope from democracy:
With the new democratic setup one can hope that with reasoning and love our angry and deprived sections may be convinced that it is not within the capacity of Government or Overseas Pakistani to solve the problem of unemployment rapidly. It can only be done with the help large amount of foreign equity investment. If they lay down the arms and welcome foreigners with open arms they may see their life change with a short span of time.

Democracy has a great way of sorting out problems and we must give it a chance to show its magic. The popular government can take some tough measures to show the people that they care. Not worrying about the reaction of small pressure Groups go ahead and give immediate relief to long suffering common man.

Since inception, Indirect taxes and Inflation are two tools which have been used by Rulers to keep poor in the country continuously poor; and not allow them to come out of poverty trap. Rulers get away with this injustice due to ignorance of the masses and very low level of understanding of fundamentals of Economics; even by journalists and intellectuals. People are unable to form a common stand and make this a major election issue.

The burden of expenses of the Rulers, Military, Repayment of past debt and interest thereon and development expenditure is 80% (may be more if we factor in inflation) borne by the poor, while rich pay so less that they are becoming richer by the day.

It is very much possible to really stop borrowing from SBP to bring down inflation to zero, giving up indirect taxes and surcharges which are collected from common man, it is possible to implement already approved land reform of 1977 for which Shaheed of Democracy- Bhutto gave his life. Such measure will convince the people that their sacrifices for democracy have not gone waste, and  that this time around Rulers are really sympathetic and humane and they will stop fighting and wait for investments and tourists to come to them and rapidly take them out of poverty trap.

I have always believed and still believe today that this will happen one day for sure and we as a nation will rise again as an Economic Giant. However my only desire in life is to see this happen during my lifetime. Amen.