Investing in real economy

Pakistan has invariably been a very difficult country to do business in, let alone thrive profitably. Keeping the much-touted rankings of ease of doing business aside, investors have often faced increased uncertainty over the past decade. This uncertainty stems from fluctuations in interest rates, currency value, external debt, a volatile ‘bromance’ with the International Monetary Fund (IMF), political tug-of-wars, the looming threat of Financial Action Task Force (FATF) sanctions, risks of economic default, and border tensions. Despite these challenges, some businesses have excelled and invested, often benefiting from government-offered cheap financing schemes. Let’s understand why such investments are necessary. The government is the job creator of last resort. Unfortunately, there is a notion in Pakistan of creating government jobs and distributing them to voters or relatives. It’s no wonder why many opt for competitive civil services examinations, seeing it as their ticket from the lower/middle class to the upper class in Pakistan.