Wil pak expats bet on pakistan?

[Olympus81]

Honestly, with all of the circus and establishment stripped naked, there will be drastic reductions in remittances (official and unofficial).

Overseas Pakistanis, majority of them, would be better served investing elsewhere and retire in their home countries.

Property tax, I understand is there, but the property prices on which tax is calculated, set by the government is exorbitantly low. Nobody talks about those issues due to vested interests.

 

[maverick1977]

never will bet on pakistan. done with it, stopped sending $700 a month i used to send and also my friends and i , pulled $2.1M out of it.. its not me, every pakistani i know has done this

 

[Olympus81]

never will bet on pakistan. done with it, stopped sending $700 a month i used to send and also my friends and i , pulled $2.1M out of it.. its not me, every pakistani i know has done this

Just go defensive and invest in S&P500 index funds.

 

[FuturePAF]

Just go defensive and invest in S&P500 index funds.

If we take Indonesia as an example, 11.25% on average year on year ROI for 24 years, how would that compare to the same period in the S&P (1998-2022)? Now if the same performance occurs in Pakistan, would it be a smart investment for non-Pakistani investors if the political issues were dealt with?

For all the international political maneuvers being done to improve Pakistan’s prospects, just fixing the basics have potentially profound benefits the elite are refusing to take advantage of.

 

[Olympus81]

If we take Indonesia as an example, 11.25% on average year on year ROI for 24 years, how would that compare to the same period in the S&P (1998-2022)? Now if the same performance occurs in Pakistan, would it be a smart investment for non-Pakistani investors if the political issues were dealt with?

For all the international political maneuvers being done to improve Pakistan’s prospects, just fixing the basics have potentially profound benefits the elite are refusing to take advantage of.

Did you factor the possible currency devaluation?

Indonesia gives you 11% per year for 24 years?

Dollar is a reserve currency, so there is very little currency fluctuation, and S&P500 index fund gives you a consistent 4% CAGR which is decent.

 

[epebble]

Remittances serve more to drive up property prices beyond the reach of those earning in PKR, and then create demand for imported goods that eat up the balance in the FE accounts that they helped balance in the first place. They are therefore more self-serving than anything else.

Remittances have caused the Dutch disease similar to what oil exporters have contracted. Without doing any hard work of tradeable value, Pakistanis in Pakistan are essentially skill less in creating wealth. This is showing up in their inability to do simple things like build or maintain railroads, power plants, mines or even run a parliamentary style of government. Remittances are the equivalent of fast food: filling but unhealthy.

 

[VCheng]

Remittances have caused the Dutch disease similar to what oil exporters have contracted. Without doing any hard work of tradeable value, Pakistanis in Pakistan are essentially skill less in creating wealth. This is showing up in their inability to do simple things like build or maintain railroads, power plants, mines or even run a parliamentary style of government. Remittances are the equivalent of fast food: filling but unhealthy.

And yet we are told they are a good thing for the economy by helping to balance the books. They are not.

 

[epebble]

And yet we are told they are a good thing for the economy by helping to balance the books. They are not.

The only hope for Pakistan is for Pakistanis to learn How to create wealth in Pakistan. Wealth here means creating goods or services that the rest of the world wants; not building fancy palaces to do weddings, unless Pakistanis learn to export wedding packages à la Las Vegas.

 

[VCheng]

The only hope for Pakistan is for Pakistanis to learn How to create wealth in Pakistan. Wealth here means creating goods or services that the rest of the world wants; not building fancy palaces to do weddings, unless Pakistanis learn to export wedding packages à la Las Vegas.

Easier said than done. The overseas remittances are used to create consumption and not production, and that is why those who earn here want to party on there while the local earners are never more than serfs to such moneyed classes, new and old. What a country!

 

[blain2]

And yet we are told they are a good thing for the economy by helping to balance the books. They are not.

They just hide or buffer our inability to export.

As said many times before, we are shamelessly one of the most underperforming populations of the world (Indians are no better but since they are not the ones in dire straits, they can be kept out of this).

This is primarily because of economic policies which reward people who invest and park their money in non-productive assets while the industries, agriculture and other value-add sectors starve of much needed capital investments.

As painful as all the import-reduction has been, (as written about in many editorials/articles talking about factories etc. being shut), we are in a situation where there is no option but to cut back on imports as we cannot pay for them.

There is always a way to fix this, but we would have to suffer the bitter pill. I honestly hope this bitter pill is taken because it will avoid a lot of damage down the road. Every SINGLE government has passed the buck because they did not want to be the fall guy come next election.

 

[VCheng]

As said many times before, we are shamelessly one of the most underperforming populations of the world (Indians are no better but since they are not the ones in dire straits, they can be kept out of this).

That is because we will be first in line to get into janah before all those who are enjoying life on this planet (and they will all burn in hell for eternity). Or so we are told to keep us suffering in life in the belief of a better hereafter. Works like a charm, apparently.

 

[nahtanbob]

And yet we are told they are a good thing for the economy by helping to balance the books. They are not.

without remittances you are looking at 50% drop in living standards. I am not sure how that is good by any means

 

[VCheng]

without remittances you are looking at 50% drop in living standards. I am not sure how that is good by any means

Only for those who receive them. The remittances simply drive out those who earn in the local currency out of just about everything.

 

[nahtanbob]

Only for those who receive them. The remittances simply drive out those who earn in the local currency out of just about everything.

the people who receive them spend it on other things. I assume it is a net positive.

I get your point about driving out those earn in local currency

 

[blain2]

without remittances you are looking at 50% drop in living standards. I am not sure how that is good by any means

Short term pain but we, as a country, cannot and should not rely on remittances to balance our books. We need to rely on our exports and fiscal discipline to not overspend. If anything, remittances should help to create a forex reserves surplus.