By: Anwar Noor Baloch
Investment is the use of savings to produce future income and vital for economic development and growth.
Before investors to invest they have a lot of questions in their minds, such as, shall we invest in Pakistan? Shall we be optimistic for doing so? What kind of risk we might face by investing in Pakistan? How about the safeguard? Are our moneis and we secured? And will we be profitable and wealthy? What advices these investors get from advisors?
Mr. Parviz Musharaf has shown in his recent visits to foreign countries that he is very optimistic, and interested in investment. Consequently, he urges all investors all over the world to invest in Pakistan. He is speeding up by making strong relations with other foreign and neighbouring countries to pump more money in to business in his country. Investors who are keen investing in Pakistan, what do they know about Pakistan? In which province and areas they pump their money? Are they making any estimation? Is Mr.Musharaf and his delegations specified the location where the investors should devote their money?
The current situation of Pakistan is indicating that Balochistan is the best and most secured place/province to be invested. How this will be easy? What benefit Baloch nation will receive? How easily Baloch can trust Pakistan’s Govt. that they Baloch nation will not face any darkness days any more? How about those Baloch who are asking for self-determination? Will not this shock Paki Government?
Someone should calculate the risks before investing in Pakistan, directly, by opening new factories and industries, or indirectly by buying shares in stock market or making deposit in to the banks. Risks where to be focused as shown bellow;
Position risk - The risk that excess assets or liabilities in a particular type of security will give rise to losses because of market movements.
Liquidity risk - The risk that mismatch of maturity dates of investments will give rise to the Bank’s inability to cover its cash flows.
Credit risk - The risk that the failure of the counter party to a trade to deliver stock (delivery risk), or fail to pay for stock received.
Operational and accounting risk - The risk arising from the speed at which transactions are made, the complexity of accounting, and from the unmonitored environment in which dealers operate.
Fraud - The risk of fraud that arises from operational risks outlined above, coupled with the fact that the values of individual securities traded may be high, or may be committed against the Bank itself, or the client whose portfolios are being managed.
According to BBC news on 07.07.05 that Pakistan is trailing $ 1.5m per day or may be more due to the Internet, and other system problem, which led, banking sectors to also suffer. Specialists have been failed to rectify such technical errors and to have a control over it. Under such circumstances how someone can put his money for investment where there are no proper controls over the systems? Will you? |
