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Continued from post 47885 - Ruppee devaluation and ...,

(58665)
Wednesday, June 2, 2010 11:30 AM 

Lets make a connection between different things being discussed but first we need to keep the following points in mind to figure out things:

1. Overseas Pakistanis are hesitant to remit funds for investment due to certain factors however; they are still willing to find ways to invest in Pakistan.
2. The inland Pakistanis also willing to invest for safer return.
3. Still the growth rate of banks and their new emergence is a clear evidence to prove the above.
4. People seek to find halal and safe avenues of investment but mostly are not ready to take risk.

Calculating Rupee devaluation against Dollar and comparing it with inflation rate and sometimes with real estate prices creates confusion. Mixing up long and short term investments and purchase of property for house construction vs. investment for gain should also be kept separate. Sorting and categorizing between various real estate investments are important.

I suggest that if someone wishes to analyze any investment decision after he has already made it should be evaluated at its own pros and cons and not with the other opportunities foregone at the time of investment. A reliable property will definitely fetch good results in the long run. For those merely relying on bank interest are infact running the risk of haraam income and face devaluation of currency. Yes, rupee is continuing to lose its value but diversification and being watchful is the answer.

Pakistanis expats are and will continue to remit funds, though concerned, as the global situation is not very promising. Although some critics say that the economic cycle will come out from recession on its own; I believe not as economic system does not run in isolation. Theory without practical observation is all about semantics. It is about the employment of phrases and clauses and their origins. And it is sometimes about the misuse of history; and about our ignorance of history. In the first place recessions are caused by unjust social systems, then it triggers political disturbance and may lead to wars. Europe despite of having all resources is struggling due to high costs, negative population growth and hatred against religious ethics because the spiritual life is taken over by the material life. US has slightly different shape but is exposed to political threats because of its claiming supremacy over all others. Living here in the Gulf region is an ad hoc life. Ultimately all expats have to find ways to invest back to Pakistan and despite its present situation are still safer and will will fetch good returns in the longer run.
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