WHY INVEST IN PAKISTAN
The land and the people
Pakistan, the cradle of one of the world’s oldest civilizations, is a land of many splendors, from the highest peaks of Himalayas through the green valleys of Indus to the Arabian Sea. Pakistan is the 9th most populous country of the world with 140 million people. Flanked by Iran and land-locked Afghanistan in the West and the Central Asian Republics and China in the North, with proximity to the affluent Middle East, Pakistan offers a vast market of over 200 million consumers. Pakistan with its warm water ports and railway networks offer shortest route to supply goods and services to the Central Asian Republics.
- 36 million labor force, adaptable, well motivated and disciplined, with many highly skilled, available at an average monthly salary of US$150;
- a large corps of experienced managers, engineers, computer scientists, bankers and financiers; with skills gained in Pakistan, the Middle East and elsewhere;
- a vast majority of the population have a understanding of the English language; all management and technical personnel will be completely fluent.
- direct air links with 50 countries;
- all major cities and industrial zones connected through an efficient railway network of 8,775 km of track and a road network of 205,304 km;
- highly developed ports with containers and specialized terminals, linked with the country through the rail and road networks;
- highly developed financial sector with over a dozen local and twenty-one foreign commercial banks;
- a fast developing telecommunication system with Èstate of the arti fibre optics technology and with the availability of a cellular telephone system.
- Completely deregulated, liberalized economy based on market forces;
- Macro-economic structural adjustment program successfully under way: inflation is within single digits, the budget deficit is contained within acceptable limits, the balance of trade is gradually improving, with the clear sign of a stable currency; declining tariff rates on imports, creating an almost free trade regime;
- Free movement and exchange of foreign currencies;
- Foreigners have free access to Pakistani capital markets, and there are no restriction on the repatriation of principal, dividends, and profits;
- No limits on the equity share held by foreigners in companies and no special requirements for entering into a joint venture with Pakistanis;
- No restriction on borrowing provided that government guarantees are not sought; and
- Statutory provisions guard against any expropriation or any other action that may be deemed to the disadvantage of investor. The Government has supported the legislation with bilateral treaties with most of its major trading partners.
Real estate in Pakistan is an important and growing sector of economy of Pakistan. Pakistan spends $5.2 billion on construction in a year. According to the Pakistan Bureau of Statistics, construction output accounts for 2% of GDP, with housing representing less than half that total. With the rate of urbanization that Pakistan has been experiencing, there is a growing need for urban planning. Pakistan is home to Asia's largest real estate investors Bahria Town.
In response to the spike in demand of residential properties in 2010, the real estate developers are once again interested in buying land and developing residential communities in the outskirts of the several major cities.Wealthy buyers and active investors are also seen buying property for sale in Pakistan, considering that this is the best time to invest in Pakistan real estate sector. With price range crossing the mark of 10 million PKR, many newly developed housing societies target upper middle class. Pakistan Government is also taking sound steps to recover the real estate sector.In this regard, the Government has announced a drop on interest rates of mortgage loans in 2012. It is considered a positive step that will encourage potential investors to invest in Pakistan properties.
Recently, a U.S real estate mogul, Thomas Kramer has entered into an agreement with the property tycoon and the CEO of Bahria Town, Ahmed Ali Riaz Malik to construct first ever Island City in Karachi, Pakistan by the name of Bodha Island City. The project is likely to complete in a span of 5–10 years and it will require an estimated influx of $ 20 billion. It has also been flashed in news that a syndicate of international investors will be joining hands later to assist in the successful execution of the project. This project further endorses the fact that Pakistan real estate is an investment hotspot for the foreign investors.