Pakistan’s economy is quite complex. There are some growing industries and some that are struggling due to some of the corruption in the government though there are still lots of new business ideas for the people in Pakistan as there are a lot of skilled and talented workers. From the footwear business to providing meals to the poor, car parts manufacturing, and many more, there is a business idea there for you.
Many investors have heavy investments in their bags, but they cannot decide what business they can succeed in. Such people often use their money in less profitable business ventures, and their investments disappoint them. The most profitable business in Pakistan is not a single one. The business market in Pakistan is extremely diverse. Developing market trends create new opportunities every now and then.
The Most Profitable Business in Pakistan
Every business has its advantages and disadvantages, and it all depends upon the strategy you are running your business on. No business can be successful until you have a profitable strategy implemented. The following are given some of the rapidly evolving markets for starting-business opportunities in Pakistan.
1. Information Technology
For those who possess some knowledge about the Information Technology industry, IT is evolving very rapidly in Pakistan. Many foreign tech giants like Alibaba, Google, PayPal, and others are setting their eyes on increasing IT markets in Pakistan. This is the best opportunity for local entrepreneurs. You can begin businesses with an exit strategy because big giants would be interested in taking small companies in the coming years.
2. Industrial and Manufacturing
Almost everyone is familiar with the Chinese mega-investment of about 45 Billion dollars in CPEC (China-Pakistan Economic Corridor) in Pakistan to build a trade route from northern Pakistan to Gwadar Port that includes Gas Pipelines, Motorways, and much more. China has already obtained a lot of land in big cities of Pakistan like Lahore for its future industrial plans. Therefore, the industrial revolution is nearby in Pakistan. Take benefit from this opportunity, and plan your next venture accordingly.
3. Trading (Import and Export)
Pakistan has a huge edge over other Asian countries because of its deep-sea Port Gwadar. When this port is completely established, trading will be quite easier. It would also become cheaper for neighboring countries in South-East Asia to trade via the Gwadar route from Pakistan to the Middle East and Europe. Timing is perfect for getting your footsteps early on to become a big business in the coming years.
4. Retail Industry
Pakistan’s population is growing with a 2.0 percent annual change, according to the World Bank report (2016). India is 1.2 percent, and China with 0.5 percent.
However, retail businesses should forecast the situation in Pakistan in the next 10 to 20 years. The number of users on the internet is also progressing very rapidly in the country compared to other developed countries in the Western world.
5. Agriculture
According to Bloomberg’s report, China would require huge agricultural land to feed its fast-growing population in the next 20 to 60 years because its land would not cover the requirements. This is also part of the CPEC and OBOR (One-Belt-One-Road) “Belt and Road Initiative” project. The main plan was to make the trade via road and make it more cost-effective. China knows that it is going to need more land in the future, and so is the trade. Moreover, Pakistan, as the neighbor of China, would have a big advantage over this. Pakistan is very famous for agriculture.
6. Solar Energy Production Company
The solar industry is ready to witness growth in Pakistan, as the research shows. At the start, you can begin developing solar energy for your local community or area by setting up a few panels. To keep prices low, only invest in a few panels and source them from China as they might be cheaper there. After you can sell enough of the energy produced, you can invest in more land and panels to expand the production company. You can sell energy on a per kilowatt basis to people’s residences. One thing to consider will also be maintaining and cleaning the solar panels to maximize your investment.
7. Local Tourism Companies
Pakistan has a vast opportunity for growth within the tourism industry now that some of the political and security tensions in that area are gone. As the tourism industry is boosting day by day across the country, this will be a great business idea to launch.
The Tourism Company is designed to provide a very local experience for the tourists, in exchange for a fee. You can start by setting up a simple website that offers your services and maps out the top five things to do as a local in Pakistan. Then you could rent a van or a coaster and take your clients on these local experiences of their lifetime.
8. Real Estate Brokering
The profits associated with real estate remain quite high, and if you want to enter this industry, one of the most cost-effective methods is to set up a real estate brokering firm.
Real estate brokers act as an agent between sellers and buyers, and all you need is a brokerage license. That said, getting your clients can be very challenging, given the number of real estate brokers.
9. Mental Health Education Service
Mental health education is a viable need in Pakistan as more and more young people continue to suffer from depression, anxiety, stress, and other mental illnesses. Initially, you will want to develop a mental health program that can be taught to various groups. Then you could reach out to the government or local city council to see if they will supply you with some grant to start. If not, you will need to approach the organizations, local schools, and possibly businesses to see if they will pay you to come and offer your services to the organization’s students, workers, and people. There is growing research and demand for this kind of work.
Investment Opportunities in Pakistan
You might have heard about the importance of saving and investing money but do not precisely know where to begin. Everyone has a different financial situation. Some people have debts, and some are not making enough to save, while others do not have control over their spending habits.
Waiting to hit the jackpot someday, and then investing, is just not realistic and won’t help you in the near future.
The global economic aspect has drastically changed its orientation from limited to evolving considerably. Now, we see cryptocurrencies, the most trending concept of blockchain technology. This technology can revolutionize the financial world.
A few decades ago, there were very fewer options to consider before investing. But with time and increasing standards of living, people are more prone to upsurge their wealth. For this purpose, one needs to invest in some way. To make a smart choice about investing, you need information on the options available and the returns of different assets.
Since you are reading this blog, perhaps you have made up your mind to start taking your financial matters a bit seriously. If that is you, way to go! Whatever your current financial situation is, you can still get your life on track, save money, and eventually invest it too. Following is a list of some of the great investment opportunities in Pakistan.
1. Stock Market Investment
If you’re searching for a long-term investment that requires no active part and no regular follow-ups, then investing in a stock market is the type of investment you should desire. Stock markets often need you only to invest, thereby purchasing some shares of a company you like, and you can trade these shares whenever required. Stock market investments carry a lot of risks, but they also provide many benefits to investors.
Moreover, the stock market of any state is the reflection of its well-being in the economy and shows that companies are doing well, which makes up the economy of the state. Stock prices, in the longer run, show how good the company is accomplishing in terms of profit, which is then interpreted to complete economic performance. The Pakistani stock market has a long history of returning at different rates of return in boom times and bust times. While you can make a fortune if you invest wisely, do not put your eggs in one basket and risk losing everything due to the level of volatility.
Even though there is a risk attached to this investment option, stocks remain one of the most popular investment choices for Pakistanis. According to a report published in the Tribune newspaper, the number of Central Depository Company (CDC) accounts – the company where shares are placed in Pakistan – has improved over the last six years. Probably, the attraction of significant returns outshines the extreme volatility of the market and attracts people to it. Still, investors must keep in mind the risk factor.
2. Gold Investment
The gold standard isn’t called standard for anything. While the real value of things varies, gold is never going to lose its value. There will be a day when oil will be worthless as the world will have moved on to green energy, gold however will only get more expensive with the time.
It is everyone’s all-time favorite way of investing money, and let us be honest, it is safe, and it is always rewarding. You can buy gold coins or bars, and both of them will work. Gold is considered to be a great hedge against inflation, i.e., if you are worried that the value of the currency will decrease.
3. Currencies Investment
The aspect of currencies is somehow related to that of the stock market, and their variation is also linked with the economic situation similar to the stock market. In the case of currencies, there are two possibilities; either they strengthen or weaken against another. In the past, only companies and banks invest in the foreign exchange market, but as time passes by, the percentage of individuals in this form of trading has improved, and many are currently engaged with it.
The variation of currencies is generally driven by demand and supply. Currencies with high demand will have sky-high prices, while the opposite will lower. Nonetheless, demand and supply are determined by the economic developments and stability on the political front of a country.
Investment in currencies increases the risk factor, but at the same time, it enables investors to balance their portfolios. Trading in currency also provides a hedge against exchange-rate fluctuation, helping many institutions against any adverse movement.
4. Prize Bonds Investment
Prize bonds are the most trouble-free and convenient way to invest your money. They are not only hassle-free but also endorsed by the government to refund if claimed by the owner anytime.
There are several numbers of denominations of prize bonds ranging from 100 rupees to 50,000 rupees. This broad range allows people to invest even as little as 100 rupees, unlike the other investment options that require a large sum for better returns. These bonds can be obtained from the State Bank of Pakistan, the National Savings Centre, and some designated branches of commercial banks. Every bond consists of a serial number, based on which draws are held every three months.
5. Mutual Fund Investment
You can not only save your money but gain a profit on it over time with mutual funds. There are no separate trades or purchases involved. They are generally available through investment firms and banks, and you are free to sell your shares at any time if you want your money. But if you wait, then the money that you have invested is returned with profit over and above your initial investment.
6. Fixed-Income Deposit Investment
These funds offer relatively lower rates and more often than not their rate of return is lower than the rate of inflation. However, for senior citizens, the rate of return is somewhat better. It is a safe way to secure your money without taking on too much risk.
Conclusion
To conclude, I would say that if you want to make a profitable investment, you must not take any risks and invest in the already established business market. If you try to make new experiments, it can result in a huge loss. Therefore, a vise strategy must invest in the most profitable business, rather than trying your luck in experiments.