Is Pakistan Safe? This is the question many foreign entities are concerned about, while making a decision to visit Pakistan for tour purposes or business.
The answer to this is that it is safe and the fact of the matter is the matter is that Pakistan has a strategic location, which can benefit many. So below are some reasons that can why tell why investing in Pakistan as a business entity is rather a good idea.
- Pakistan is now in top 10
Pakistan emerged as one of the biggest improver in world’s latest Ease of Doing Business index 2020. The following year will become very progressive and productive for Pakistan, several regulations very in few government sectors of Pakistan which has contributed to Pakistan’s ranking in World Bank’s Index. And numerous security measures have been taken in Pakistan which will lead safe business infrastructure in Pakistan.
- Increase in tourism
Over the last few years the tourism industry of Pakistan has grown significantly. In the past this country had many negative connotations attached to it which has now turns around and now Pakistan’s northern area has attracted tourism immensely.
This shift has claimed attention from several international hotel brands. It clearly shows great opportunity for many international hotel chains to start operating in this region. In addition to that, tourism and leisure activity businesses can also invest. The overall target audience of Pakistan tourism is mostly millennial or Gen Y, who are quite inclined towards adventurous activities.
- Skilled and efficient labor
Pakistan is one of the countries with a reputation of cheap and skilled labor, due to which we see a brands like Nike and Adidas getting their footballs manufactured here. This fact is not relevant to sports industry but is equally valid in other industries; hence this reduces the cost of labor for many businesses. Secondly people in Pakistan are super-efficient although and tremendously hardworking. This fact really goes in favor of Pakistan as an economy that can accommodate international investments.
The most important thing here is the fact that Pakistanis are naturally very hospitable, in other words they right fit for industry like tourism.
- Lower cost of operations
Pakistan is an economy which is heading towards growth, which is why it is welcoming and flexible. The start-up costs for any business are not too high and the government is very supportive making it easy for international investors to invest in the economy.
As stated earlier there is abundance of labor in Pakistan, it is less expensive to hire them in comparison to hiring labor anywhere abroad. As the matter of fact the wage or salary expense grabs the largest pie in the expenses, so might as well invest in Pakistan as an opportunity cost and enjoy latter. Also be known to the fact fact that Pakistan has required technical resources which can also save the cost.
- First movers advantage
As you know Pakistan tourism has just started to grow, there are very few international hotel chains Pakistan the ones that we have are the 5 start properties.
A little sneak peek here is that most of the local travelers are budget travels and do not find luxury hotels pocket friendly enough to suit their budget, which open a massively wide room for budget hotels to flourish here. The history of business provides enough evidence that the first movers always grab attention even after a plethora of competitors have arrived.
- Welcoming perception of locals
General perception here: imported is good and foreign services are better quality, although many local service providers are strong enough to compete. In general consumer in Pakistan will mostly opt for products which are either manufactured abroad or affiliated with an international firm even if it’s just a simple certification. When the market is full of consumers it is very easy for any international entity to attract them. So if the local find hotel here which foreign with global hospitality standards they will most certainly pick them over the local hotels.
In spite of all the reasons up here, there are many other reasons which if explored can benefit many international investors, such as franchising, all that an investor might need to do is, research, acquire, provide a license and earn a royalty while ensuring quality standards.