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Feeling insecure about my savings in Pakistan

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psyoptica

Tape Ball Captain
Joined
Jun 28, 2013
Runs
1,154
Hello everyone,

I'm a regular reader of this forum, specifically this section. I know a lot of you are very insightful and have exposure to many things so I decided to create this thread to seek advice from someone who understands the laws and regulations of Pakistan.

I'm a Pakistani citizen based in Karachi. Lately, I've started feeling very insecure about my money kept in a bank account. I earn very decently through my contracts with some American companies which send me remittances to my bank account in Pakistan. I know this country is not safe for anything and everyone is out there for your money. I have seen many people who get wrongly prosecuted here for their money and they have to bribe their way out.

Instead of feeling happy about the money I receive, I feel anxious and feel like my bank account could be seized anytime and I would be forced to pay huge bribes even though my work is clean and legal (I provide software consultancy services)
I have recently faced some hurdles receiving payments from some European countries where despite providing all proof of my work, they still held my payment for a long time and sent it back. If God forbids the corrupt government here tries to seize all my money here, I don't know what I am going to do as I don't know anybody or have any connections to prove me innocent.

I just want someone to advise me on what's the best course of action for me to protect my earnings. I don't want to invest in real estate here as I'm hugely turned off with property investment (My dad was ripped off of millions in a property scam). My experiences in this country haven't been very pleasant and I'm very naive when it comes to dealing with legal issues. The corrupt here know how to make dirty money and get away with it but nothing is ever easy for simple, law-abiding citizens like me.
It's painful to write this but it's true.

Anyways, I appreciate any advice on how to protect my money. Maybe sending it abroad somewhere could be a good option but it isn't so easy either.
 
[MENTION=1269]Bewal Express[/MENTION] look what corruption crusades affect the economy and everyday people especially in a country like Pakistan...
 
Convert it in gold jewellery ? Gold jewellery is a very good asset .

Don't keep you money in the bank if you feel insecure , convert most of it to a foreign currency like dollars and stuff it in a mattress at home .
 
gov bonds, gold bars?

Pak is offering decent bond rates too (of course if interest is ok with your religious views)
 
mazkhan said:
Convert it in gold jewellery ? Gold jewellery is a very good asset .

Don't keep you money in the bank if you feel insecure , convert most of it to a foreign currency like dollars and stuff it in a mattress at home .
Click to expand...
Escobar style..
 
mazkhan said:
Convert it in gold jewellery ? Gold jewellery is a very good asset .

Don't keep you money in the bank if you feel insecure , convert most of it to a foreign currency like dollars and stuff it in a mattress at home .
Click to expand...

Having a healthy bank account has many benefits though. It's why I have maintained this bank account. I can easily get visas to travel due to my bank balance and I can help people out by transferring money easily. Maybe I should mantain the balance up to a threshold and deposit the rest somewhere else.
 
Bigboii said:
Escobar style..
Click to expand...

Yeah and other Escobar style peeps will enter and take those gold bars away.
Here in Australia Aussie thieves know that desi households keep gold.. so they target them and steal them, easily. They come with metal detectors and all the modern equipment.
 
Invest the money, in bonds. Or, if it is a lot of money, I have heard Swiss banks take good care of such money..
 
In this modern age your problem isn't really a big problem tbh, you can do so many things

those solutions are probably not the most patriotic ones...

but you don't owe dumb gov anything, they are incentivizing you into choosing those unpatriotic options
 
Bigboii said:
In this modern age your problem isn't really a big problem tbh, you can do so many things

those solutions are probably not the most patriotic ones...

but you don't owe dumb gov anything, they are incentivizing you into choosing those unpatriotic options
Click to expand...

Oh yeah absolutely. Patriotism can go take a hike when it's about safeguarding your hard-earned money which you can risk losing to the corrupt thieves in this country.
I love Pakistan as a country but not the Pakistani society and the greedy mindset that is prevalent here.
I would like to know all the options available.
 
hoshiarpurexpress said:
Yeah and other Escobar style peeps will enter and take those gold bars away.
Here in Australia Aussie thieves know that desi households keep gold.. so they target them and steal them, easily. They come with metal detectors and all the modern equipment.
Click to expand...

My mum had thousands of dollars worth of gold bars as investment that she was secretly saving up
thank god we didnt get robbed but the neighborhood wasn't that good either..

so when I found out I painstakingly helped (forced) her in converting that gold into stocks over a period of time
 
Last edited:
hoshiarpurexpress said:
Invest the money, in bonds. Or, if it is a lot of money, I have heard Swiss banks take good care of such money..
Click to expand...

How does one send money abroad through banking channels? I'm not looking to face allegations of money laundering in the future.
 
Bigboii said:
seriously look into it Pak is offering good bond rates,

good safe investment
Click to expand...

Yeah I saw that in news. One of my Pakistani mate here in Oz has a restaurant and he also is planning to buy some due to that, he was discussing about that with me as well.

Indian Govt. does not have such schemes, but anyways there are private stocks e.g TCS which have given good returns.
Also real estate investment in India is a bit more reliable if you go for Well known and major builder, or buy existing one.

If the OP is saying the truth, its a bit sad. Tbh Overseas Indians are easily able to invest back in India and they are able to do it, in the form of stocks, real estate investment. I own 3 properties sitting here in Bangalore and all of them are hassle free and easily manageable, and are worth crore each.

Pakistan, if not already, should do the same.
 
psyoptica said:
How does one send money abroad through banking channels? I'm not looking to face allegations of money laundering in the future.
Click to expand...

do bitcoin, bonds

swiss bank was a joke (unless you are seriously loaded)
 
hoshiarpurexpress said:
Yeah I saw that in news. One of my Pakistani mate here in Oz has a restaurant and he also is planning to buy some due to that, he was discussing about that with me as well.

Indian Govt. does not have such schemes, but anyways there are private stocks e.g TCS which have given good returns.
Also real estate investment in India is a bit more reliable if you go for Well known and major builder, or buy existing one.

If the OP is saying the truth, its a bit sad. Tbh Overseas Indians are easily able to invest back in India and they are able to do it, in the form of stocks, real estate investment. I own 3 properties sitting here in Bangalore and all of them are hassle free and easily manageable, and are worth crore each.

Pakistan, if not already, should do the same.
Click to expand...

I would love to invest in a property but I'm extremely reluctant to do it in Pakistan. Recently I've had to go through many unpleasant experiences which have made me extremely paranoid to invest in anything here.
I'm very dumb when it comes to handling money. I don't know how the hell I'm able to earn so much in the first place.
It will be sweet justice if all is taken away from me to balance things out in the universe as I don't really deserve any of it (sarcasm)
 
psyoptica said:
Yeah I'll look into bonds or fixed deposits. Though I'm not sure how secure those 2 options are either.
Click to expand...

people do it all the time you'll be fine,

but if you try to rely on a middle man instead of going straight to gov websites/dep than you significantly increase your chances of losing that money

Just stay out of middle man in both situations, do your research

go to Bitcoin thread on how to,where to invest they'll probably help you (personally I am no fan of bitcoin but you can diversify with bonds, bitcoin, some gold)
 
and the day hen gov outright stopped paying bonds youll have a bigger problem on your hand than your savings...
 
There are a ton of things you could do right now. To get a better idea of your situation, it's best you clarify a few things regarding your situation. What is your investment horizon (how long are you looking to invest for)? Are you saving for retirement or do you want access to it? What is your risk tolerance? Is the total equity value under $100k?
 
Bigboii said:
and the day hen gov outright stopped paying bonds youll have a bigger problem on your hand than your savings...
Click to expand...

Sovereign default?

Pakistan bond yield is 10 per cent. Nowhere near default.

But its a very good return rate. Anything above 7 a year is very good.
 
Bigboii said:
people do it all the time you'll be fine,

but if you try to rely on a middle man instead of going straight to gov websites/dep than you significantly increase your chances of losing that money

Just stay out of middle man in both situations, do your research

go to Bitcoin thread on how to,where to invest they'll probably help you (personally I am no fan of bitcoin but you can diversify with bonds, bitcoin, some gold)
Click to expand...

If you're risk tolerant, Bitcoin could be a good investment. However, there are moving parts that could limit the Bitcoin appeal soon. There's a good chance the US might pass legislation that hurts crypto given its effect on the dollar.
 
cricketjoshila said:
Sovereign default?

Pakistan bond yield is 10 per cent. Nowhere near default.

But its a very good return rate. Anything above 7 a year is very good.
Click to expand...

You also need to consider the inflation rate in Pakistan. Although it isn't 10%, there still isn't a lot of appeal for the bonds given the fact there is zakat mandatory on the returns (please correct me on the zakat if I'm wrong).
 
world cup captain said:
There are a ton of things you could do right now. To get a better idea of your situation, it's best you clarify a few things regarding your situation. What is your investment horizon (how long are you looking to invest for)? Are you saving for retirement or do you want access to it? What is your risk tolerance? Is the total equity value under $100k?
Click to expand...

Not looking for a long-term investment. I want my money to be easily accessible but also safe. I don't like taking risks which is why I have kept everything in the bank but now it's starting to look less and less secure.
Right now it's less than $100k but soon will cross that.
 
Slog said:
You are being paranoid
Click to expand...

The things I hear every day, the challenges I have to face and the worst thing is there's no one to turn to for help.
Banks here are like the CIA nowadays. Everything is seen through a microscopic lens. I understand it's done to curtail corruption/money laundering but the corrupt know their way out anyway and it's the common people like me who get stuck.
 
world cup captain said:
If you're risk tolerant, Bitcoin could be a good investment. However, there are moving parts that could limit the Bitcoin appeal soon. There's a good chance the US might pass legislation that hurts crypto given its effect on the dollar.
Click to expand...

Yeah many have suggested investing in Bitcoins. I used to own bitcoins some years back when I was living in England but sold them all. I'm not aware of the convenience of investing in bitcoins in Pakistan but will look into it.
 
Last edited:
psyoptica said:
Not looking for a long-term investment. I want my money to be easily accessible but also safe. I don't like taking risks which is why I have kept everything in the bank but now it's starting to look less and less secure.
Right now it's less than $100k but soon will cross that.
Click to expand...

If you don't want any risk, buy a CD from Goldman Sachs for a minimum of $500 with .65% APY. It's basically cash that cannot be withdrawn for 9 months.

If you have some risk tolerance, invest a good chunk of cash in a mutual fund. You'll thank yourself in 5 years.
 
world cup captain said:
If you don't want any risk, buy a CD from Goldman Sachs for a minimum of $500 with .65% APY. It's basically cash that cannot be withdrawn for 9 months.

If you have some risk tolerance, invest a good chunk of cash in a mutual fund. You'll thank yourself in 5 years.
Click to expand...

he lives in Pakistan
 
psyoptica said:
I would love to invest in a property but I'm extremely reluctant to do it in Pakistan. Recently I've had to go through many unpleasant experiences which have made me extremely paranoid to invest in anything here.
I'm very dumb when it comes to handling money. I don't know how the hell I'm able to earn so much in the first place.
It will be sweet justice if all is taken away from me to balance things out in the universe as I don't really deserve any of it (sarcasm)
Click to expand...

Another way, if you want to keep it in cash in bank is to break it into a series of fixed deposits.
In Multiple banks, diversify the banks. Choose reliable banks.. I am assuming there is State Bank of Pakistan(like SB of India).. Surely that cannot go bust.
Then pick another banks with good reputation, preferably foreign ones or at-least ones with large international presence. HSBC(Chinese bank).. is in India as well, must be there in PK.
Also look at the minimum amount bank has to return even if they go bust in case of FDs.
Do this research. All this is a bit more pain, but hey, It is your hard earned money.
 
cricketjoshila said:
Sovereign default?

Pakistan bond yield is 10 per cent. Nowhere near default.

But its a very good return rate. Anything above 7 a year is very good.
Click to expand...

Yeah I know but he seemed a bit stressed out about the bond situation

that's why I said Pak inst anywhere near defacement and even if it was (which it isnt) your problems at that point are way bigger than you not getting back your money
 
cricketjoshila said:
Sovereign default?

Pakistan bond yield is 10 per cent. Nowhere near default.

But its a very good return rate. Anything above 7 a year is very good.
Click to expand...

10 percent in todays time is a really good return. I don't think you would get such return anywhere in the world.
 
Bigboii said:
My mum had thousands of dollars worth of gold bars as investment that she was secretly saving up
thank god we didnt get robbed but the neighborhood wasn't that good either..

so when I found out I painstakingly helped (forced) her in converting that gold into stocks over a period of time
Click to expand...

Good you did that. One of my colleagues here in Melbourne, had her house raided the next day she posted her marriage pics on FB. She is from Kerala, checkout their marriage jewellery on internet.
Thankfully she is a smart one and had kept all that gold in a safe deposit in bank. But thieves today are becoming very smart and modern.
 
hoshiarpurexpress said:
Another way, if you want to keep it in cash in bank is to break it into a series of fixed deposits.
In Multiple banks, diversify the banks. Choose reliable banks.. I am assuming there is State Bank of Pakistan(like SB of India).. Surely that cannot go bust.
Then pick another banks with good reputation, preferably foreign ones or at-least ones with large international presence. HSBC(Chinese bank).. is in India as well, must be there in PK.
Also look at the minimum amount bank has to return even if they go bust in case of FDs.
Do this research. All this is a bit more pain, but hey, It is your hard earned money.
Click to expand...

his problems aren't the defaultments of banks but the fact that Pak authorities will try to put charges on him of fraud,money landeirng (they are active with more "targets to meet" under IK also add fATF into the mix gov is trying to get out of it)

its mostly his fear of brecuracy trying to get a payday out of him than his fears about the financial well being of the country/banks
 
Bigboii said:
his problems aren't the defaultments of banks but the fact that Pak authorities will try to put charges on him of fraud,money landeirng (they are active with more "targets to meet" under IK also add fATF into the mix gov is trying to get out of it)

its mostly his fear of brecuracy trying to get a payday out of him than his fears about the financial well being of the country/banks
Click to expand...

Hmm.. That is very tricky then. To keep money out of the bank systems is very difficult, the system is designed in such way.
The only alternative is Bitcoin, real estate, bonds etc.
Bitcoin, I am personally a bit scared of it as the day it challenges US dollar, it will finish that day.
America will say it is providing us freedom from Bitcoin :)
 
hoshiarpurexpress said:
Hmm.. That is very tricky then. To keep money out of the bank systems is very difficult, the system is designed in such way.
The only alternative is Bitcoin, real estate, bonds etc.
Bitcoin, I am personally a bit scared of it as the day it challenges US dollar, it will finish that day.
America will say it is providing us freedom from Bitcoin :)
Click to expand...

:))) not only do they do that with foreign countries they do it here to

you put "freedom' into anything people go app s%$t and vote for it even if its says "freedom to jail journalists" people will love that idea

(I don't know if you know about US politics or not)
Andrew Yang (pres canidate) out out this program of $1000 to every adult US citizen
according to polls his popularity shot up among libertarians who oppose any gov money/welfare/tax

guess the name of the program
"freedom dividend"... :))
 
Bigboii said:
:))) not only do they do that with foreign countries they do it here to

you put "freedom' into anything people go app s%$t and vote for it even if its says "freedom to jail journalists" people will love that idea

(I don't know if you know about US politics or not)
Andrew Yang (pres canidate) out out this program of $1000 to every adult US citizen
according to polls his popularity shot up among libertarians who oppose any gov money/welfare/tax

guess the name of the program
"freedom dividend"... :))
Click to expand...

Well i know a lot about the "Freedom" and "Liberty" that Americans offer :)
Freedom, somehow sells in America.
 
bitcoin is overvalued now, it can go down anytime.

But we do live in a globised world, you can invest in anything. The safest place were people invest there cash is t-bills, its what all coutries do even china and billion dollar companies all over the world.
 
psyoptica said:
Hello everyone,

I'm a regular reader of this forum, specifically this section. I know a lot of you are very insightful and have exposure to many things so I decided to create this thread to seek advice from someone who understands the laws and regulations of Pakistan.

I'm a Pakistani citizen based in Karachi. Lately, I've started feeling very insecure about my money kept in a bank account. I earn very decently through my contracts with some American companies which send me remittances to my bank account in Pakistan. I know this country is not safe for anything and everyone is out there for your money. I have seen many people who get wrongly prosecuted here for their money and they have to bribe their way out.

Instead of feeling happy about the money I receive, I feel anxious and feel like my bank account could be seized anytime and I would be forced to pay huge bribes even though my work is clean and legal (I provide software consultancy services)
I have recently faced some hurdles receiving payments from some European countries where despite providing all proof of my work, they still held my payment for a long time and sent it back. If God forbids the corrupt government here tries to seize all my money here, I don't know what I am going to do as I don't know anybody or have any connections to prove me innocent.

I just want someone to advise me on what's the best course of action for me to protect my earnings. I don't want to invest in real estate here as I'm hugely turned off with property investment (My dad was ripped off of millions in a property scam). My experiences in this country haven't been very pleasant and I'm very naive when it comes to dealing with legal issues. The corrupt here know how to make dirty money and get away with it but nothing is ever easy for simple, law-abiding citizens like me.
It's painful to write this but it's true.

Anyways, I appreciate any advice on how to protect my money. Maybe sending it abroad somewhere could be a good option but it isn't so easy either.
Click to expand...

Buy a $200,000 real estate in Turkey and get their citizenship as well.
Rent it out and spend wisely.

The worst you can do is to keep a lot of cash in Rs in a Pak Bank.
 
Bigboii said:
Yeah I know but he seemed a bit stressed out about the bond situation

that's why I said Pak inst anywhere near defacement and even if it was (which it isnt) your problems at that point are way bigger than you not getting back your money
Click to expand...

The day pakistan defaults on bomd payments, that pkr lying in his bank account wont be worth much either.
 
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