Best investment in Pakistan 2023

I was searching the internet today and wondered: What is the best investment in Pakistan? That gives me good returns with low risks. I want to invest in Pakistan, but everywhere I look, all I find is real estate investment. I was getting suggestions on investments in real estate, and I hate real estate because I have stuck all of my investments in real estate. I stumble upon many ideas like stock market, Gold, Currencies, Prize Bonds, Mutual funds,Fixed deposits etc. but Question is; what is best investment

Best investment in Pakistan

According to the situation in Pakistan in February 2023, the lowest-risk investment is either Islamic money market funds, REITs, physical gold, or Islamic gold funds. In the Islamic money market, your returns will be 12–15% per annum. Investing in gold will protect your money from depreciation. There are many other options, but either they are unstable or they contain some interest. And if you have a trustworthy partner who can work for you in partnership with honesty, then the best investment is farming or investment in local businesses that don’t depend on imports.

Let’s have an overview of investment opportunities in Pakistan and then discuss why i am inclined toward Islamic money market funds and physical gold.

Investment options in Pakistan – 2023

Investment OptionMnimum InvestmentRisk FactorReturns per annumRemarks
Real EstateMinimum 10 lacHigh Risk10%
Stocks10 PKRVery High Risk15%-20%Select Stocks from KMI
Mutual Funds (Equity, Index)1000 PKRHigh Risk10%-15%Select Shariah Complaint funds
Mutual Funds (Money Market)1000 PKRLow Risk10%-15%Select Shariah Compliant funds
Gold~180,000 per tolaLow RiskVaries on country situationRupee devaluation countered
Forex1000 PKRVery High Risk10%Not Shariah Complaint – Not Recommended
Savings Account500 PKRVery Low5.5%Meezan bank provide shariah complaint account
Fixed Deposit500 PKRVery Low6-7%Not Shariah Complaint – Not Recommended
Sleeping Business PartnerVariesVery High20%-30%highly dependent on the capabilites on working partner. you can earn upto 100% profit in year.
Rental Property1.5 CroreVery Low10%-13% as rent
10% annual Growth
Very good investment providing you consistent passive income
REITs (DCR)10 PKRHigh16.6% in dividends 3.8% growth
Farming5 lacsHigh40%-50%A good partner is required

so above are some options that we can use in Pakistan. Now let’s analyze them one by one

Real Estate

It is the most popular investment in Pakistan. Real estate is a high-risk investment in which your capital can get stuck. However, if you are proactive, you can benefit from the rising market. As mentioned above, it can give you an average return of 10% per year. For example, if you buy a property for Rs. 40 lakh, after 5 years it will be worth Rs. 60 lakh. 50% profit in 5 years That is 10% per year. People purchase property, particularly land, and then abandon it for an extended period of time. The value of real estate increases over time. It can then be resold at a significantly higher price. but if we take the average per year, it is 10–12%. However, there have been exceptional cases where people have received 25-30% annual returns. but it is rare.

After stocks, real estate exposes investors to the most risk. The 2008 financial crisis demonstrated that real estate does not always appreciate in value. Real estate entails additional risks that are not present in other asset classes. When investing in real estate, environmental risks and maintenance costs must be balanced against potential profits.

if you want to invest in property, keep an eye on market prices and sell the property when they are at their highest. There are numerous real estate blogs and books available that can keep you up to date on real estate trends, construction costs, tips and tricks, plot size conversion, and much more.


Stocks are a very risky investment that can give you good returns and losses as well. In February 2023, Pakistan’s stock market will be at a low due to political instability. The Pakistan Stock Exchange is a good investment and my personal favorite. But I don’t recommend it unless you know how to select stocks and know when to enter the market and when to leave it. In 2022, I will have made a 35% profit. The key to profiting from PSX is to assess the political situation and profit whenever possible. Pakistan’s stock market hasn’t performed well in the last five years. However, if you make a profit in time, you can make 20–25% as well. However, average stock market returns range from 17% to 20%.

There was a study conducted on the Pakistan stock market in 2019 titled “Impact of Gold and Oil Prices on Pakistan Stock Market” . It says oil is vital to the Pakistani economy, and fluctuations in oil prices cause fluctuations in stock prices. In an inefficient market, the oil price and stock price are contemporaneously correlated, which means that if the oil price rises, the stock price of companies that use oil will fall. Changes in oil prices would adjust with the lag of changes in stock prices in an inefficient market.

If you are interested in Pakistan’s stock market, I have written a guide on how to open an account in PSX. Once your account is open, you have to select stocks that are stable and match your goals. Stock selection is also available on this blog. How to select stocks will guide you through the stock selection process. Don’t short stocks or purchase options as you will have to pay interest later, which is not halal. Purchase the stock with your money and sell it at your own risk.

Mutual Funds

Most finance gurus don’t like mutual funds due to their low returns, but I kind of like them due to their low risks. Every bank offers many mutual funds, and they all have a different risk profile. low risk and low returns, high risk and high returns. I am not a fan of interest-based investments, so I avoid all types of interest-based investments. Now in 2023, all banks will offer Shariah-compliant mutual funds with various risk profiles. My favorite is Shariah-compliant mutual funds in the money market. Money market funds are low-risk, and they almost always grow. They are growing, albeit at a slow pace. Mutual funds are completely defined in Mutual funds in Pakistan.

A study done by two pkistani researchers on “Determinants of Mutual Funds Performance in Pakistan” says

Mutual fund is better choice for small investors in this modern era for those who don’t have easy to access knowledge, skills, knowledge to invest in stock market. However you can also select money market funds to minimize the risk. you can find as mush as 15% returns per year with most of the mutual funds.

Please check the risk profile before investing in mutual funds; otherwise, you may lose your capital as well.


The most secure way to invest is in physical gold or gold funds. Gold will not devalue your money. and the same study conducted for the stock market recommend to invest in Gold as well. this study on stock market concludes

Following empirical evidence of our study, we recommend that investors should invest in gold because the main reason is that a hike in inflation reduces the real value of money and people seek to invest in alternative investment avenues such as gold to preserve the value of their assets and earn additional returns. This suggests that investment in gold can be used as a tool to decline inflation pressure to a sustainable level

Impact gold and oil prices on stock market

Hence Gold is one of the safest investments. However, physical gold has the problem that it can be stolen. This risk can be minimized by saving it in a locker or by purchasing gold funds instead of gold.

As the Pakistani rupee falls further against the US dollar, gold has emerged as an especially safe asset to invest in. In Pakistan, gold prices recently reached an all-time high of Rs. 194,500 per tola (11.66 grams). Gold prices are expected to rise further as a hedge against inflation. As a result, investing in gold coins can yield promising results. This is also a better option than silver, as silver prices have remained stable throughout the current economic cycle.


The trading of different currencies is referred to as “forex trading.” Because of its convenience and ease, forex trading is also an investment opportunity. Study currency trends, stay up to date on the latest currency rates and financial situations, and try to invest accordingly. but don’t trade online, as in that case you wouldn’t receive actual currency. and you can be scammed. purchase the currency from a forex exchange. or it is simply called “money exchange.”

Consider the American dollar and the Kuwaiti dinar as examples. The average price of a dollar in 2018 was Rs. 140, and the price of a Kuwaiti dinar was Rs. 400. Prices are currently around Rs. 265 and Rs. 866, respectively. Currency, like gold, is an excellent investment option. but this option is not good for Pakistan as now a days there is shortage of dollar. if you purchase dollars it will effect the economy. although some dollars doesn’t effect in overall economy but drop makes the river.

Savings Account

Savings accounts contains the interest so i dont consider it as investment. However Meezan bank bachat account is Shariah complaint savings account. Savings account is not for investment actually but it is for Savings only.

The Meezan Bachat Account is a one-of-a-kind savings account that offers high expected monthly returns as well as the ability to withdraw funds as needed. The Meezan Bachat Account provides a higher expected rate of return while providing nearly the same convenience and service as a standard savings account. Salaried or self-employed individuals, housewives, and retirees can open a Meezan Bachat account.

Bank will distribute half of its gross income to Mudarib.The depositor will Share 50% of the gross revenue as Rab-ul-Maal. Meezan profit rates are around 7.5% per annum. you can select any islamic savings account but in my opinion, savings acount should not be used as investment. put small amount there for emergency use only and major amount should be mutual funds.

Fixed Deposit/ Certificate of Deposit

A bank will issue a certificate of deposit to someone who deposits money for a predetermined period of time at a predetermined interest rate. Nearly all banks in Pakistan typically offer CDs as a financial product. You receive a premium for putting your money in the bank for a predetermined amount of time.

This is the worst type of investment, in my opinion. You should select Islamic money market funds instead of a fixed deposit. They have low returns, and the fixed deposit amount is not liquid. You cannot take out this amount without prior notice. Although most banks have fixed deposits with interest, Meezan Bank offers riba-free fixed deposits. The annual profit rate ranges from 7.5% to 9%. This is a bad investment.

Investment in Business

You can invest in any local business and agree on returns with that owner. However there are risks. If owner is not hosnest than your money can b gone, and also if that business owner is not a professional or proactive, his business and your money will be lost as well. but if owner is proactive, honest and successfull, this option can make you upto 100% returns per annum.

You can invest in terms of project, like you invest in business on project basis and at the end of Project you take out your investment with profit and leave. otherwise you can invest in company that uses your money and gives you profit on monthly or Quaterly basis. i have experiance of both options.

I invested in one firm on project basis and i got 20% returns in just 3 months. you can say it is 80% per annum. That project actually did worst in terms of profit. expected return was 28%. and my second experiance; i invested in a company for long term, and it gives me returns on Quaterly basis. in 2 years i have gained 150% of my investments. that is 75% per annum. Although it is very high profit rate but it requires that you find honest and talented partners.

Rental Property

Real estate with a rental income is one of the best investment choice in Pakistan. Through monthly rentals, this asset class generates dependable income and has intrinsic value. Due to the constant demand for housing, regardless of the state of the economy, and the fact that as inflation increases, so do property values and rental rates, it serves as a good inflation hedge.

it has 2 disadvantages, first you need huge investment in order to purchase commercial property or make one. second is it depends upon tenant, if it goes on rent early then it is very good investment and it will be giving you around 1% monthly return as its rent. and its value also increases ovet time so you will get growth as well.

In terms of returns, it will give you 12% as rent and 10% annual growth, so in 5-6 years it should pay itself back. A typical building is built 20 years in mind. so you can get 20-22% returns per annum for 20 years. after 20 years you can sell it on its land value. Hence Rental property is one of the best investment but it requires huge amount at start.

REITs (Real estate investment Trusts)

if you liked the idea of Rental property but dont have that much money, and even if you have that mush money but you don’t want the hastle of maintaining it and renting it. you can still benifit by investment in REITs. REITs are the companies doing rental property business but they take funds from stock market investments and give returns as dividends. Currently there is only One REIT in Pakistan Stock Market that is DCR (Dolemon city REIT). it gave 16% average returns in last 5 years. and it doent have that much effect of stock market.

In order to invest in reit you need 14 PKR to purchase its single share. you can purchase 1000 shares in 14,000 PKR. an it grows from 9 to 14 in last 5 years. this is also 10% growth per annum. but keep in mind its returns will be low from your personal Rental property as there are fund fees included.


Like Investment in business, farming is also an excellent option but like every investment has its own pros and cons. this option also have ots own. Pros are this option can give you upto 50% profit on our investment. but you need a good and honest partner who knows the farming. you can invest the money and take land on lease. Now a days in Feb 2023, average rate on lease for one year is around 120,000 PKR per acre. and then you have to pay for seed, water and fertilzer. some money on labor. and you can sow wheat, corn, sunflower and cotton. Typical investment per acre is around 2 lacs and you can get back around 2.8 lac to 3 lacs after a year.

So if you take 10 acre on lease, you will invest around 20-22 lacs and after an year you will get 32-35 lacs. However there is a catch, weather highly effects on crops. if weather supports you, you can make upto 60% returns. i have some experiance in this feild. in my case the rain comes when my crop was ready and i lost all profit. but you can make upto 3 times crops in a year. i got all my loss covered in next crop and got 35% returns after year.


Now back to the question what is best investment in Pakistan. after considerin all the investment options, their risks and returns. i conclude money market mutual funds, REITs and gold are low risk and average returns option. investment in business and farming are high risk and high returns options. rental real estate is low risk but it requires high investment. Stock market is highly risky but returns are good. forex trading and crypto trading is not halal so not an option. Forex purchase is not good for Pakistan so not advised. investment in Plots, savings account and fixed deposit are not suitable for low returns.


Please note that nothing in this article should be interpreted as investment advice. Before investing in any project, our readers are always urged to do their research. It is the reader’s responsibility to be aware of the investment regulations in their area.

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