Reason - 1: Geo-strategic Location |
| Reason - 2: Trained Workforce A large part of the workforce is proficient in English, hardworking and intelligent. Pakistan possesses a large pool of trained and experienced engineers, bankers, lawyers and other professionals with many having substantial international experience. |
| Reason - 3: Economic Outlook Pakistan is one of the fastest growing economies of the world having touched a GDP growth rate of 8.4% in 2005. Today Pakistan has over 170 million consumers with an ever growing middle class. Foreign Direct investment has risen sharply from an average of $300 million in the 1990s to over $3.7 billion in 2008-09. Fiscal deficit has declined from an average 7% of GDP in the 1990s to around 3% in recent years. And FOREX reserves have increased from $3.22 billion in 2000-01 to $11.6 billion in June 2009. |
Reason - 4: Investment Policies Current investment policies have been tailor made to suit investor needs. Pakistan's policy trends have been consistent, with liberalization, de-regulation, privatisation, and facilitation being its foremost cornerstones. |
Reason - 5: Financial Markets The capital markets are being modernized, and reforms have resulted in development of improved infrastructure in the stock exchanges of the country. The Securities and Exchange Commission of Pakistan has improved the regulatory environment of the stock exchanges, corporate bond market and the leasing sector. Whilst the Federal Board of Revenue has facilitated structural reform in tax and tariffs and the State Bank of Pakistan has invigorated the banking sector into high returns on investment. |
Saturday 10 October 2009
5 Key Reasons To Invest In Pakistan
Investment opportunities in Pakistan
Pakistan offered best investment opportunities both in forex trading and its 3 emerging stock markets operating under most regulated and protective atmosphere promising a good return to the investors.
This was the consensus of the speakers at a Seminar on "Investment opportunities in Pakistan" arranged by Harvest Group of Pakistan in Lahore on Saturday. Harvest Smartrend Securities (Pvt) Limited is a partnership between the Harvest Group of Pakistan and Smartrend International Limited of Hong Kong. Smartrend International Limited is a brokerage arm of Smartrend International Holdings Ltd, a BVI company with an authorized capital of US $ 10 million. The group maintains a wide range of operations in the field of providing financial services, including U.S. securities, forex and commodities trading to investors in the United States and the Asia-Pacific Region. Harvest Smartrend Securities Pvt Ltd. was registered as a corporate member of the Lahore Stock Exchange on October 3, 1999.
The 3 speakers associated with the Harvest Group explained in details to a large gathering of investors and stock dealers, economists and researchers the vast investment opportunities Pakistan offered to both domestic investors and the foreign investors and what important role Harvest was playing as a local brokerage house of international standard in harnessing these potentials by providing expert professional advise and research oriented guidance to its clients to ensure reasonable profits on their protected and safe investments. Harvest provided facilities to both the investors of the stock market as well as forex trading which has recently picked up in Pakistan. The seminar ended with the concluding remarks of Mohammad Gulraze Mir, Chairman and ECO of Harvest Topworld International (Pakistan).
The speakers pointed out that in recent years, emerging stock markets in developing countries have become an important and widely accepted investment tool. Characterized by ever-growing turnover and high potential returns these markets are known to have tremendous growth potentials. In fact, during the past decade, these markets have experienced considerable growth.
Emerging market
Pakistan being among the developing economies of the world has the benefit of holding the status of emerging markets i.e. The stock markets in Pakistan are classified as emerging stock markets. It is because of these wide range of advantages that Harvest Smartrend Securities (Pvt) Ltd. (HSS), a corporate member of Lahore Stock Exchange, offers investors an opportunity to capitalize on such markets.
Introducing the Harvest Group senior Marketing Manager, Mr. Kamran K. Megee said that the group had an international chain which comprised of the following companies, Harvest Topworth International, Harvest Smartrend Securities Pvt. Ltd, First Harvest (Texas) Inc., Harvestrade International Inc., Harvest Global Network Inc., Global Harvest Corp.
Harvest Smartland Securities Pvt Ltd (HSS) and Harvest Topworth (HTW) International are securities and forex brokerage arms of the Harvest operating in Pakistan. HTW is in fact the pioneer of forex brokerage in Pakistan with a largest set up with Hi-tech communication and information system. Speaking on securities in Pakistan. Ms. Humaira Jamil Research analyst said that investment in stock market of Pakistan was today much safer because of the various measures taken by the Securities and Exchange Corporation (SECP) which has assumed the role of real protector of investors. She recommended investment in Pakistan because of its emerging markets, enhanced and improved performance of capital markets during the past few years.
Mr. Akbar Hussain spoke on forex trading which according to him had tremendous potential. He disclosed that trading volume of forex was many time more than investment in share markets. The daily turnover of forex trading which was going on round the clock was about 2 trillion US dollars. The concept was comparatively new in Pakistan but was fast developing. He claimed that HTW of his group was developing forex trading in Pakistan on the most modern lines backed by Hi-tech communication and information system compiled by highly qualified and professional team of researchers.
Mr. Mir, in his concluding remarks explained the importance of forex trading in the growing capital market of Pakistan. He said Harvest Topworth International provides professional and efficient Spot Currency trading facilities and customized investment portfolios to sophisticated investors in Pakistan. In association with the Topworth Group and a worldwide network of investment companies, Harvest Topworth puts the largest global investment market within reach of the Pakistan investment community. Harvest Topworth International, work as a large professional team to serve the best interests of the investors. This is a continuous operation from 5:00 a.m. Monday morning Pakistani time when the Tokyo market opens, to 1:00 a.m. Saturday when the New York market closes. This is basically to protect the interests of the investors from the movement of the currency rates in the Forex Market in and outside the country.
Tuesday 6 October 2009
Forex Terms With "G" to "I"
GTC (Good-till-Cancelled)
Refers to an order given by an investor to a dealer to buy or sell a security at a fixed price that is considered “good” until the investor cancels it.
Hedge/Hedging
Strategy to reduce the risk of adverse price movements on one's portfolio and to protect against the volatility of the market. Hedging typically involves selling the good forward or taking a position in a related security. Hedging becomes more prevalent with increased uncertainty about current market conditions.
High/Low
Refers to the daily traded high and low price.
I
Inflation
Refers to the increase in prices (price level) and wages over time that decrease purchasing power. It is calculated from changes in the price index, usually a consumer price index or a GDP deflator.
Initial Margin
The percentage of the price of a security that is required for the initial deposit to enter into a position. The Federal Reserve Board requires a minimum of 50% initial margin. For futures contracts, the market determines the initial margin.
Interbank Rate
The rate at which the major banks (Deutsche, Citibank, Bank of Tokyo) trade in foreign exchange.
Interest Parity
Theory that says that the difference in interest rates across countries should be equal to the difference between the forward and spot rate.
Interest-Rate Swaps
The process of changing the form of debts held by banks or companies, in which they trade debts/loans fixed rates for floating rates (or vice versa) in another country.
Interest-Rate Swap Points
The interest rate can be determined through the difference in the bid and offer price of an exchange rate. If you are looking at the EUR/USD exchange rate and the offer price is higher than the bid price, than Europe's interest rates are higher than US interest rates.
ISDA (International Swaps and Derivatives Association)
Organization defining the terms and conditions for trade in derivatives.
Forex Terms With "F"
FCM
See Futures Commission Merchant.
Federal Deposit Insurance Corporation
A regulatory agency of the created to oversee that bank deposits are insured against bank failures. It was created in 1933 to restore confidence in the banking system. It insures up to US $100,000 per banking institution.
Federal Reserve/Fed
The central bank of the United States, responsible for monetary policy.
Fixed Exchange Rate
When the exchange rate of a currency is not allowed to fluctuate against another, i.e. the exchange rate remains constant. Typically, under fixed exchange rate regimes, currencies are allowed to fluctuate within a small margin. Fixed exchange rate regimes require central bank intervention to maintain the fixed rate.
Fixed Interest Rate
An interest rate used for loans, mortgages and bonds that remain at the same rate throughout the period.
Flat/Square
To either have no positions or positions that cancel each other out.
Floating Rate Interest
An interest rate that is allowed to adjust with the market. The opposite of a fixed interest rate.
Foreign Exchange (Forex)
The buying and selling of currencies.
Foreign Currency Effect
Refers to how changes in the exchange rate affect the return on foreign investment.
Forward Contract
A deal in which the price for the future delivery of a commodity is set in advance of the delivery. The Forward rate is obtained by adding the margin to the spot rate. It is used to hedge against adverse fluctuations in the exchange rate that can affect amount of profit or loss at that future date.
Forward Points
Refers to the pips that were added to or subtracted from the current exchange rate to obtain the forward price/rate.
Future Rate Agreements (FRAs)
FRAs are agreements that are made that allow for borrowing and lending at a constant interest rate for a specified period in the future.
Front Office
Refers to the sales personnel (trading and other business personnel) in a financial company.
Fundamental Analysis
The analysis of economic indicators and political and current events that could effect the future direction of financial markets.
Futures Commission Merchant
A Futures Commission Merchant engages in futures and options transactions. An FCM has a role in the futures market that is similar to that of a broker in the securities market.
Futures (Financial Futures)
Future contracts that commit both sides to an exchange/transaction of financial instruments, currencies or commodities at a future date and a predetermined price. Future contracts are similar to forward contacts, but future contracts can be traded in the futures markets. Can be used to hedge or speculate against the value of the asset at the expiry date.
Forex Terms With "E"
Economic Indicator
An economic statistic used to indicate the overall health of an economy, such as GDP, unemployment rates, and trade balances. Used in fundamental analysis of foreign exchange markets to speculate against the direction of an exchange rate.
Efficient Markets
Markets where assets are traded in which the price is indicative of all current and relevant information and thus it is impossible to have undervalued assets.
End of the Day (Mark to Market)
Accounting measure, referring to the way traders record their positions. There are two ways that a trader can record his positions: the accrual system in which only cash flows are recorded and the mark to market method, in which the value of an asset is recorded at the end of each trading day at the closing rate or value.
Estimated Annual Income
The expected yearly earnings.
Euro
The new monetary unit of the European Monetary Union used by twelve countries in the European Union. It is now the legal tender of those countries as of January 2002. Those countries include Germany, France, Belgium, The Netherlands, Luxembourg, Spain, Portugal, Italy, Austria, Ireland, Finland and Greece.
European Central Bank
The central bank of the EMU, responsible for the monetary policy of all member countries.
European Monetary Union
An institution of the EU, whose primary goal is to establish a single currency (the euro) for the entire EU.
Economic Exposure
When the cash flow of a country is vulnerable to changes in the exchange rate.
