The increasing sale and purchase of cryptocurrency and NFTs in Pakistan and worldwide clearly indicate that people are looking to invest small amounts in business ventures that can payout big In a few years with minimum work. If Pakistan properly utilizes this desire of young investors to invest small amounts in new ventures, then Pakistan can rapidly industrialize using private investment only.
A similar idea was established by Kickstarter and other crowdfunding websites. An entrepreneur creates his project on their site, defines the share price and total investment needed. Other users can invest as much as they like. The best part is that they would only need to invest when the whole project fund target is reached.
If Pakistan’s government can set a similar system for a cooperative company, an entrepreneur would present a business plan, stating investment needed, payback time and profitability. The business plan would be checked by relevant government experts and if found correct would be posted on investment board. Pakistani citizens and ex-pats would be able to go online and find projects they would like to fund. The funds would be kept with the government until the full fund target is met and will be released according to the budget submitted by entrepreneur to the newly established company.
If the government of Pakistan creates new regulations for cooperative companies then the investments can be safeguarded with insurance or company assets. In case the company is successful than the original investors would have option to sell their shares at new valuation or continue their investment for 2 more years, during which time the company would be listed on stock exchange and investors can sell shares after company is listed.
This way the government would regulate and check the new cooperate crowd-sourced companies. While investors would trust the data checked by Government organization. And new companies would be listed on PSX. With this method, the government can also crowdfund large public sector projects like Hydro dams as well, while many entrepreneurs will be able to find funding for their projects.
SHAHRYAR KHAN BASEER
Peshawar
