Thread by @MirMAKOfficial

A Thread Dedicated To Some Of My Favourite & Respectful Journalists:

STOCK MARKET INVESTMENT (FIPI) FROM FOREIGNERS IS A BILLION TIMES DANGEROUS THAN “Hot Money”

1. Why has the Journalists brigade always praised billions coming into #Pakistan Stock Market which is more

Dangerous than Hot Money ? Lack of understanding perhaps or an agenda ? Allah knows better.

2. How is FIPI more dangerous ?

Well when billions come into Stock Market (SM). Those billion create a buying frenzy. It creates a euphoria. It makes stocks go up. That induces

Other local investors to buy as well looking at the potential upside. This creates a follow the beard mentality and a investor stampede is created. Pakistani SM is so small that for example a $1 billion in FIPI can literally cause the SM to go from 30,000 level to 45,000

Within no time.

3. That approximately can be a value increase of $20 billion dollars on paper. Meaning the SM value has increased from let’s say: $30 billion to $50 billion. Just imagine a mere $1 billion investment can effect the overall market value by $20 billion.

4. This for example turns the foreigners $1 billion investment into $2 billion.

5. The investor decides to sell all $2 billion in investments and now this causes pressure on the markets. Remember that the stock market can go from 30,000 to 45,000 within months. Not years

6. Meaning that the investors’ $1 billion can be turned into $2 billion within months. Not years.

7. A 100% return. He sells that 100% return. Converts it back into dollars and now takes out $2 billion in dollars out of PAKISTAN within months.

8. Plus his selling

Causes panic and creates a downward pressure. People in Pakistan think as always since we have a GORA slave mentality that if the GORA is selling then he must know something we don’t. We should sell too, is the attitude.

9. That causes a selling stampede and the $20 billion

In profits starts to evaporate.

Who loses out the most ?

Pakistani common people. Because they mostly bear the cost of $20 billion in value evaporating because the sudden exit of the foreign investors causing panic.

Who else hurts ?

Pakistani corporations whose

Value decreases suddenly and drastically because of a sharp decline.

Who else hurts ?

Public Sector Enterprises listed on PAKISTAN Stock Exchange like PSO. PPL. SSGC. SNGPL Etc Etc. Billions of dollars of Market Capitalisation (Value) gets wiped out.

Who else hurts ?

The image of PAKISTAN that the world watches our markets drop suddenly and begin to think that our economy is tanking. That creates a dominos effect.

10. People hold back FDI. People hold back on Greenfield investments. Donor agencies stop project funding. IMF and WB issue

Warnings on the overall economy. Trade slows down. Currency fluctuates. Investments domestically even come to a halt.

SOUNDS FAMILIAR ?

We just saw this happen from 2016 to 2018. Didn’t we ?

How come no Anchor no Genius program host no brilliant TV economist

Ever spoke about that to you ?

11. On the other hand $1 billion in hot money comes in for example at 13% Rupee based rate. And IF the investor wants to suddenly exit with this $1 billion after 3 months instead of the whole year. He only gets the interest return

Of 3 months. Not the year. Instead of 13% he only gets 3 months interest which is merely 3 1/4 %.

No economy comes crashing down. No GoP own companies lose billions. No pakistani Investor loses his life savings. No IMF or WB give bad reviews. No Donor Agencies

Stop their project funding. No foreign publications write bad reviews. NOTHING HAPPENS.

So the next time any Anchor tries to scare you into believing that everything is doom and gloom in Pakistan. Pray that he is guided by Allah.

PAKISTAN is here to stay. PAKISTAN

Is here to grow. PAKISTAN is here to prosper. No Anchor no Journalist. No economist. No businessman. Not even me and you matter more than PAKISTAN.

PAKISTAN matters and only PAKISTAN matters.

#PakistanZindabad