I recently met a friend of mine after ages. Like all Pakistanis, I started whining about my sky-high expenses and stagnated salary. However, he looked very happy.
Upon inquiring, he told me that he is spending money wisely and strategically. He sets aside a certain percentage every month, let’s say 20% of the total monthly income, and invests that amount into multiple investment opportunities. As a result, he is not only gaining financial freedom but is also saving up for his future.
I fell in love with this idea at that instant. The idea is simple yet so effective. With small monthly deposits, you can save thousands of rupees every month. I personally researched this area and compiled a list of tried and tested investment opportunities in Pakistan. All these ideas require little investment but the ROI (return on investment) is significant.
If you are someone who is also looking for side hustles and best investment options in Pakistan, then this article is for you.
|Investment Type||Money Needed to Start the Investment||Return on Investment|
|1. Peer to Peer Lending||As low as Rs. 10,000||Variable|
|2. Investment in Stocks||As low as Rs. 10||The average return is 10%. However, it can differ|
|3. Invest in Banks and Investment Companies||As low as Rs. 10,000||Variable|
|4. Real Estate||As low as Rs. 10 lac||Variable. It can start at 16%|
|5. Gold||Rs. 75000 for one tola||Variable|
|6. Forex||As low as Rs. 1000||Variable|
|7. Bonds||As low as Rs. 100||Rs. 700,000|
1. Peer to Peer Lending
The first investment idea in Pakistan is peer to peer lending. According to Investopedia, peer-to-peer (P2P) lending enables individuals to obtain loans directly from other individuals, cutting out the financial institution as an intermediary. If you are someone who has some cash stacked inside the bank, let’s say 1 lac or even Rs. 50,000, you can multiply that cash. Yes, you heard me right.
Give your money to people with an interest rate. Set the time duration for the lending, and you are good to go. However, this idea is risky but with high ROI. Try giving money to people you know and trust and never forget to document the lending process.
2. Invest in Stocks
This is one of the best investment opportunities in Pakistan. Try investing in the stock market. If you do not have knowledge about stocks, try hiring a broker. The average stock return is usually 10% in Pakistan. That means if you invest Rs. 1000 in stock, it will give you Rs. 1100 after some time, and sometimes within hours.
However, again, like peer to peer lending, stocks are risky. You have to be well aware and strategic about your choice of stocks. Try building a portfolio of stocks to reduce the overall risk. Usually, the pricy stocks yield high ROI, but they also have a high risk attached to them. So, choose wisely! We do not want you to lose your money.
3. Invest in Banks and Investment Companies
This is one of the cheapest business opportunities in Pakistan with low investment. Open a bank account and deposit a small amount in it. Start investing in the account every month. Banks usually offer 10% to 12% annual returns. Do a little research and select the bank that suits you the best. There are many investment companies in Pakistan as well that are giving high returns e.g. Lakson investments, PMIC, and vice versa.
4. Real Estate
This is one of the most common investment ideas in Pakistan. People buy property, especially land, and leave it for some time. Over time, the price of land increases. Keep a track of the market prices and sell the property when the prices are at their peak.
It is a safe investment option because you get total ownership of the property and most importantly, the land is an asset whose price always increases. One drawback of this investment is that the returns might take time and if you are looking for a short-term investment, then this option may not be feasible for you.
The prices of gold are increasing day by day. The recent price of one tola gold is Rs87,250. Last year, its price was around Rs68,000. You can clearly see the difference between the prices and the ratio of returns you can expect. So, try to invest in gold. Buy gold biscuits because they generate maximum returns. Similarly, you can also invest in diamonds and silver (Chandi).
Forex trading means trading of different currencies. This is also a great investment opportunity because of its convenience and ease. Study the trends in currencies, keep yourself updated with the latest currency rates and financial situations, and try to invest accordingly.
For example, consider the example of the American dollar and Kuwaiti dinars. In 2018, the average price of one dollar was Rs. 140, and the price of a Kuwaiti dinar was Rs. 400. Today, the prices are Rs. 156 and Rs. 512, respectively. Just like gold, currencies are an excellent investment option.
This is an investment idea that is highly dependent on your luck. The Government of Pakistan issues treasury bonds starting from merely Rs. 100. Get those and regularly check them for prizes. If you are lucky, you may win cash prizes of thousands of rupees.
For example, the first cash prize for a bond of Rs. 750 is around Rs. 15 million. See the amount of effort you are putting, and imagine the rewards you are getting.
And the best thing? You can always use bonds as a substitute for cash. Student bonds are one of the safest and easiest investment ideas for students in Pakistan.
So, this was a compiled list of investment ideas in Pakistan. It will give a roadmap and an idea to you about where to invest a small amount of money in Pakistan. All these ideas are really simple and easy to start. Some of them may be a little risky, such as stocks, but they are a perfect source of high return on investment in Pakistan.
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