Insaf Investment Fund (IIF)

Proposal

Author: Naeem Iqbal

December 27, 2013 Email: NaeemIqbal@about.me Twitter: @IamNaeemIqbal Blog: http://naeemiqbalblog.wordpress.com/

Index:
1. 2. 3. 4. 5. 6. 7. 8. 9. Background Aim Vision Organization Transparency Investors or Lenders Lending Limits or Targets Why invest in Fund? Benefits for investors 4 4 4 5 5 5 5 6 7 7 8

10. Benefits for PTI-Led Government

11. What steps can be taken to establish IIF?

1.

Background:

Under the circumstances that do not attract the Foreign Direct Investment (FDI), it is imperative for PTI to draw a strategy to be able to fund its projects that lead to said Change in KPK. In General election 2013, PTI is given mandate to govern the KPK to prove itself as a party of Change and Imran Khan as the leader to lead that change in the KPK. The tumor that is gradually engulfing KPK is terrorism and the policies of Federal Government that does not give any hope to get rid of terrorism in Pakistan in near future. In such situation, it is very difficult for any foreign investor to invest in Pakistan and that is what is impacting directly the KPK Government. Now what can we do to overcome mentioned problem? The nations history learnt us how to become self-reliant. China as an example is a country that relied on its expatriates at beginning of new developing era in 1970s without binding itself with foreign debts and donations. The policy of self-reliant made China a successful economic model with 50 millions Chinese came out of poverty in last ten years. 2. Aim:

Imran Khan is a man of vision and commitment therefore gives a hope that PTI will be able to deliver as no other party or government delivered to its people in Pakistan. Imran Khan is a belief and ideology that gives us direction to stand up for Imran Khan to support him to fulfill his vision. Apart for ideological and moral support, PTI members should draw a strategy to bring investment in KPK. One such step to establish, INSAF INVESTMENT FUND. Instead of rely on International donors and foreign Aid, PTI should establish its Investment Fund in which PTI members should lend money. INSAF INVESTMENT FUND (IIF) should be a supply of capital belonging to PTI members that should be used collectively to invest in PTI Government mega-projects while each investor retains ownership and control of his or her own shares. 3. Vision: To built Naya Pakistan with Imran Khan.

4.

Organization:

The initiative is based on Imran Khans vision, ideology and commitment, therefore, he should be the Patron-in-Chief of fund. IIF should be governed by Board of Governors (BoGs) that should be responsible for operational, managerial, and monitoring systems of IIF. The BoGs should acquire all such needed expertise to achieve its objective with most efficient and transparent manner. The members of BoGs should comprise of PTI Expatriates, leaders from PTI CEC, and KPK Government Representatives. 5. Transparency:

The basis of IIF is more goodwill than business proposition, therefore, it is highly sensitive matter to ensure that whole process is secure, guaranteed and flaws proof. Imran Khan, himself, should play important role in monitoring system and that system should be comprise of all best practices methodologies and principles. 6. Investors or Lenders:

The sole aim of establishing IIF is to invest in KPK in order to fulfill the manifesto of PTI, therefore, it has political affiliation. Because of political affiliation with PTI, IIF should not encourage non-PTI members to lend in to avoid any political and ideological complications. 7. Lending Limits or Targets:

PTI organizations are established in almost 40 American, European and Gulf countries, having members from few hundreds to few hundred thousands. PTI members residing in such countries have capacity to invest/lend at least couple of thousands US dollars in IIF to make it a multi-million dollars fund. Show below in Table 1.

No. of Lenders/Investors 100 1000 5000

1

Amount (US$) 2000 2000 2000

Total Fund (US$) 200,000.00 2,000,000.00 10,000,000.00

8.

Why invest in Fund?:

There are many reasons that makes investing in Fund more viable than investing as an individual, i.e.: In most cases, potential investors do not have knowledge, experience or expertise to initiate investments in small or medium projects. To acquire information about investment opportunities, Governmental incentives and areas of interests. To establish contact with relevant person for specific project. Complicated procedures and regulations. Legal and bureaucratic hurdles. To seek guarantees and transparency. Pakistani Expatiates find hard to connect officials in Pakistan therefore do not feel any attraction and benefit to investment small amounts in Pakistan. The amounts required for mega-projects are high and therefore small investments on individual basis can not be entertained. It is not worthy to hire an expert team to take-decisions and monitor the investment in case of small individual investments. Apart from above, there are many other factors that makes investing in Fund more attractive than investing as an individual.
1

Table 1- Showing no. of investors, amount of investment and total Fund..

9.

Benefits for Investors: Investors in Fund shall be privileged to stand-by Imran Khan to make NAYA Pakistan. Not a donation, therefore, investing via fund shall offer attractive profit (NOT Interest) and long term increase in value to shares in fund. Fund shall be run by an expert team with direct involvement of Imran Khan, therefore, makes it trustworthy to invest with no fear of fraud or malpractice. Investors shall be able to withdraw their lended money at agreed period of time. PTI Government shall initiate incentives such as, i.e. tourism special packages, special health services, and priority based services in Government departments etc to recognise investors contribution towards Good-Governance.

10.

Benefits for PTI Government: Reliance on AID, foreign donations and foreign loans can be minimize IIF investing in mega-projects can provides reassurance to other investors to invest in PTI-Led projects. IIF is not a foreign loan therefore does not attach any strings (Rise in taxes, electric and gas bills, etc) to it. Flow of foreign reserves in country can increase. Investment by IIF and PTI-led Government in power sector, mining, housing, health, and education shall give rise to employment opportunities and that can increase Income Tax Review for Government. Production of power can help reduce the utilities bills and that can have positive impact on farming, industrial and business growth. Oil and Gas exploration can help PTI-led Government to be self-sufficient in petroleum and Gas products. Building of new housing societies can reduce the shortage of accommodation as well as help to revive local industries and business.

Above factors can support the improved living standards with increase in spending capacity with provision of better services from the Government. 11. What steps can be taken to establish IIF?

We , Insafians, are part of PTI and share responsibility to fulfill its vision and manifesto towards NAYA PAKISTAN. Following suggested steps can be taken towards establishing IIF: To share idea and start a discussion on it. A small committee of Insafians shall be constituted to organize discussions and to gather feedbacks. Meanwhile, Overseas PTI Office-bearers shall be engaged in discussion to get their inputs and feedback Summery proposal then shall be discussed with CEC members (like Asad Umer & Fauzia Kausuri) for their inputs before sending final proposal to Imran Khan for his consideration.