Buying Bankrupt Foreign Companies to Modernize Pakistan

[FuturePAF]

Many companies will go bankrupt in the developing 2020 Recession. There will be an over supply of factories and an under supply of demand. This is the perfect time for Pakistani companies or rich individuals/investors to buy these foreign companies at severely discounted prices and use their technology in Pakistan.

We should plan to use this recession to the benefit of national development, and try to procure all the components of CPEC’s Agricultural development from the cheapest suppliers and learn to put them together ourselves.

This can also be applied to industrial production, and companies with modern manufacturing techniques in industries where we stand a chance being competitive.

 

[El Sidd]

Government should usurp them in Pakistan on war economy footing.

Start with Faisalabad

 

[CrazyZ]

With all due respect, Pakistan does not have the resources to do this. Trillions of dollars are going to be injected into the global economy by central banks and governments. There will be short sharp recession then things will rebound hard. Most of the pain will be in developing countries, most developed countries will bail out most major companies.

 

[Imad.Khan]

China will beat you to them

 

[FuturePAF]

China will beat you to them

we don’t need to buy many companies just one or two modern companies in each level of the value chain and apply the knowledge to our own companies.

With all due respect, Pakistan does not have the resources to do this. Trillions of dollars are going to be injected into the global economy by central banks and governments. There will be short sharp recession then things will rebound hard. Most of the pain will be in developing countries, most developed countries will bail out most major companies.

I am suggesting buying small companies that do high tech versions of agricultural or industrial processes we can learn from to augment our labor intensive industries.

Drone based agriculture that uses multi-spectral cameras can analyze the crops and help farmers better manage the resources they have such as pesticides efficiently is one use.

Also, by buying foreign companies, Pakistan can find a way to better integrate into global supply chains.

Here are a couple of papers from the Lahore School of Economics that outlines how we can go into industries we can be competitive in to diversify our exports and move up the value added chain. The professor that researched these papers should be consulted by a team from the government to outline what technologies we should procure.

http://www.lahoreschoolofeconomics....19/Issue SP/08 Chaudhry and Andaman Final.pdf

http://lahoreschoolofeconomics.edu....ufacturing Sector for Exports of Pakistan.pdf

 

[Patriot786b2]

This is absolutely necessary for betterment of Pakistan.

 

[FuturePAF]

Government should usurp them in Pakistan on war economy footing.

Start with Faisalabad

Then you won’t get any future investors.

The fair thing to do is let the companies earn a profit and pay a fair tax. If you kill the golden goose it won’t be able to lay anymore golden eggs.

 

[El Sidd]

Then you won’t get any future investors.

The fair thing to do is let the companies earn a profit and pay a fair tax. If you kill the golden goose it won’t be able to lay anymore golden eggs.

Dude paper money counts less than toilet paper in the world right now.

No one is investing anywhere and future is community economics.

Now instead of wasting time on repeating things. Be creative for once Mr. future

 

[Bilal Khan (Quwa)]

Many companies will go bankrupt in the developing 2020 Recession. There will be an over supply of factories and an under supply of demand. This is the perfect time for Pakistani companies or rich individuals/investors to buy these foreign companies at severely discounted prices and use their technology in Pakistan.

We should plan to use this recession to the benefit of national development, and try to procure all the components of CPEC’s Agricultural development from the cheapest suppliers and learn to put them together ourselves.

This can also be applied to industrial production, and companies with modern manufacturing techniques in industries where we stand a chance being competitive.

I like the idea of buying out medium-to-large enterprises (not enterprise-grade) that specialize in key technologies across manufacturing, medicine, electronics, etc. We don't even need to move them to Pakistan, let them be where they are in the US, Europe, Canada, etc, but use them to incubate Pakistani talent and expertise, and let the latter spin-off their own businesses in those fields in Pakistan. Meanwhile, you can use the dividends/equity profits from the enterprises you bought overseas to offer grants and investments to Pakistani ventures.

Sadly, this 'out of the box' thinking doesn't work out well with us Pakistanis, we are far too risk-averse (business wise) and lack vision. Given how stocks are crashing, everyone from the Pak Gov't to even the armed forces should have plans to set-up their own wealth funds.

 

[FuturePAF]

Dude paper money counts less than toilet paper in the world right now.

No one is investing anywhere and future is community economics.

Now instead of wasting time on repeating things. Be creative for once Mr. future

Lets catch up first before we start to innovate. Look at the JF-17 project; PAF incrementally absorbed modern technology over the last 20 years, and only now does it venture into project AZM. In the fields of agriculture and industry, if we do the same, we can catch up in short order and then innovate.

look at EVERY SINGLE COUNTRY that is a world power; many companies in the US acquired technologies from Britain to modernize in the 1870s, the Japanese got technologies from the west during the Meiji period and then innovated. South Korean shipbuilders would bring over Japanese engineers on the weekends to teach them the latest technologies and paid them under the table. The Chinese are acquiring ever known technology they can get their hands on (by any means necessary) and applying it to their industries, and you telling me I’m “wasting time on repeating things”

what would be creative for the status quo industries in Pakistan, is doing what other countries have done to get ahead.

I like the idea of buying out medium-to-large enterprises (not enterprise-grade) that specialize in key technologies across manufacturing, medicine, electronics, etc. We don't even need to move them to Pakistan, let them be where they are in the US, Europe, Canada, etc, but use them to incubate Pakistani talent and expertise, and let the latter spin-off their own businesses in those fields in Pakistan. Meanwhile, you can use the dividends/equity profits from the enterprises you bought overseas to offer grants and investments to Pakistani ventures.

Sadly, this 'out of the box' thinking doesn't work out well with us Pakistanis, we are far too risk-averse (business wise) and lack vision. Given how stocks are crashing, everyone from the Pak Gov't to even the armed forces should have plans to set-up their own wealth funds.

The beauty of the situation is the an average modern company in developed world can be a real game changer for an entire segment in Pakistan, especially if that company stays operational in the west. The western company gets steady business and the Pakistani side gets to modernize and innovate and market its products through the western company.

While investors maybe risk averse, considering how far behind Pakistani agricultural productivity is relative to the global average, even a modest investment is bound to pay dividends.

the pattern of buying failing foreign firms during a recession is how many countries rapidly modernized and got a growing share of the next bull market.

In the last two recessions; 2000-2002 and 2007-2009, Indian firms bought up many global brands and did exactly what you suggest to become competitive in new markets and new industries where they didn’t have to reinvent the wheel to get their foot in the door

 

[SoulSpokesman]

@FuturePAF

Future Pai,

just one or two modern companies in each level of the value chain

Who will identify and do valuation of these hidden gems?

Regards

 

[Yaseen1]

i think more problem is with culture and work environment of our country,when foreign companies and multinationals operating in Pakistan owned by western entrepreneurs failed to change this culture it seems difficult for our own people to change it by merely buying foreign companies,gcc rich nations had done this but failed to develop own such companies and indigenous products

 

[k s ahmed]

The PM of the country is asking for loan waiver and the residents of the country are dreaming of buying companies.

it shows your shallow thinking and low attitude
one can dream. its the first step for a change

now , for more sensible people in this thread, i think we still need a brand or 2. we need a label which is recognized all over the world. buying companies can be good but also depends on how we use them. we dont really have maturity or international exposure. We need to involve pakistani expats in related fields abroad, if we want to buy the companies and make use of them.
nothing is possible without a network. we like to work in silos. there is no platform known to me where pakistani porofiessionals are present, discussing ideas and networking .. this forum is more of political and defense forum.

 

[KhanBaba2]

one can dream. its the first step for a change

Yes. You can dream. Maybe you should dream of returning the loans so that you return them. Otherwise you are basically talking of buying these companies with money that does not belong to you.

The correct way to get technology is to make your country attractive for FDI so the companies voluntarily come to you and it is a win win for both Pakistan and the company.

 

[k s ahmed]

Yes. You can dream. Maybe you should dream of returning the loans so that you return them. Otherwise you are basically talking of buying these companies with money that does not belong to you.

The correct way to get technology is to make your country attractive for FDI so the companies voluntarily come to you and it is a win win for both Pakistan and the company.

are you teaching us to pay back loans while your whole country is inflated on fake loans ?

aqlana na hon te mojan he mojan.. when you dont have wisdom, you enjoy more.