Interview with Mr Altaf Hussain, analyst from Quetta
PAGE: There is no denying the fact that the quality of investment matters at least as much as its quantity. What is your take on it?
Altaf Hussain: What an investment means is crucial to have a crystal-clear knowledge about investment before comparing its quality and quantity.
Investment means a sum of money invested today for earning future profits. It can be monetary or any other form of resources.
Money or other resources invested/consumed today to an asset, project, or business with the expectation of earning income, profit, or an increase in value in the future e.g. purchasing shares, bonds, development of real estate, buy/upgrade machinery, and business projects.
In real life there are many investment opportunities available but a bitter truth is the financial constraint and other limitations of resources that choice comes and the best relevant investment decision must be taken to achieve success. Sometimes, it happens that huge amount of funds are available and also there are many cheap investments opportunities available but the outcome is lesser and few costly investment opportunities are available but their outcome is also higher and vice versa. In such a situation, a mature, relevant, calculated futuristic decision can lead to success in future.
The quantitative perspective discusses that huge amount invested brings massive profits and large number of projects increase profits. On the other hands, the qualitative perspective discusses that quality of the investment is the key feature for the success of the investment. A deep comparison of the quality and quantity of the investment is as follows;
Quality of investment; refers to how good, safe, productive, and reliable an investment is not merely how much money is invested. It is judged by factors such as:
- Return potential: expected profit, dividend, interest, or capital gain.
- Risk level: possibility of loss, default, fraud, or price decline.
- Liquidity: how easily it can be converted into cash.
- Safety and stability: financial strength of the issuer, credit rating, and consistency of earnings.
- Productivity: whether the asset generates future income or increases production capacity.
- Management and fundamentals: for shares, strong earnings, good governance, stable balance sheet, and efficient use of capital.
Example:
A government bond with a reliable return and low default risk is generally a high-quality investment; a highly speculative share with uncertain earnings is lower quality, even if its possible return is high.
Quantity of investment means the amount or volume of resources invested, usually measured in monetary terms. It answers: “How much is being invested?”
Examples:
- Investing PKR 300,000 in shares.
- A company Buying PKR 20 million new machinery.
- A government investing PKR 5 billion in infrastructure.
Economics measures the quantity of investment as gross investment (total spending on new capital goods) or net investment (gross investment minus depreciation). Economists view investment as spending on capital goods, such as machinery, buildings, and equipment that will help produce goods and services in the future.
A sound investment decision considers both: invest an appropriate quantity of funds in investments of good quality.
Quality determines whether an investment is likely to produce sustainable returns, survive difficult conditions, and avoid permanent loss. Strong indicators include stable earnings, genuine cash flows, low excessive debt, competent management, and a sound business model.
Investing in a profitable, well-managed company with strong cash generation may be safer and more rewarding than investing in a weak, overleveraged business. Quantity without quality can simply increase exposure to loss.
Quantity is still important because investment needs sufficient scale to meet goals such as retirement, education, business expansion, or infrastructure development. A high-quality investment with too little capital may not produce a meaningful outcome.
However, quantity should follow quality—not replace it. Capital allocation involves selecting the best available opportunities based on their expected contribution to value, risk, and return.
Quality determines safety, durability, return reliability, and risk of permanent loss.
Quantity determines the scale of impact, income, growth, and achievement of financial goals.
Best approach is to invest an appropriate amount in high-quality, diversified opportunities.
Quality is the foundation; quantity is the amplifier. Poor-quality investment multiplied by a larger amount usually produces larger losses, whereas high-quality investment supported by adequate capital creates sustainable wealth. Therefore, investors, companies, and governments should first assess quality—risk, return, liquidity, governance, and productivity—and then decide how much to invest.
PAGE: There is a prevalent assumption that Pakistan’s major investment opportunities are increasingly being assessed through the prism of project viability, financing structures and commercial risk rather than geopolitical enthusiasm alone. How would you comment on it?
Altaf Hussain: The above mentioned assumption is correct, but with an important qualification: Pakistan’s investment environment is becoming more commercially disciplined, yet geopolitical and security considerations still materially shape investor decisions. Investors increasingly ask whether a project’s credibility of its revenue, the real time finance structure, the acceptable currency and policy risk and enforceable contracts before responding to diplomatic or strategic narrative.
Pakistan is trying to move towards a more investment-led economic agenda, focusing on priority sectors such as agriculture, minerals, IT and telecom, energy, and defence production. The main and fundamental purpose is to shift the economy from a debt-driven to an investment-driven model through faster decisions and implementation follow-up.
The govt has announced the Uraan Pakistan policy which focuses on the development of energy sector, IT and Telecom, agriculture and energy sectors. We have seen there are many foreign visits of the Prime Minister and its team to a different countries of the world and asking them to invest in Pakistan and ensuring them about the beneficial opportunities available and also pledging that the Govt. policies will support such investment and making the grounds easy for doing business.
On the other hand, beside doing so much effortless works the government is still failed to attract foreign investors due to weak rule of law, changing tax policies, corruption, political uncertainty, and security concerns as barriers to doing business in Pakistan. These risks affect the expected return, cost of capital, and willingness to commit long-term funds.
Only government support or geopolitical goodwill is not enough to attract investment rather there must be realistic implications of beneficial projects which is as follows;
Financial viability: positive net present value NPV, acceptable internal rate of return IRR, Payback period and realistic cash-flow projections.
- Financing structure: an appropriate mix of equity, debt, concessional finance, and risk guarantees.
- Commercial risk management: firm buyers, power-purchase agreements, commodity-price protection, or export contracts where relevant.
- Currency and repatriation protection: mechanisms to manage exchange-rate risk and repatriate profits.
- Legal and regulatory certainty: stable taxation, enforceable contracts, and predictable approvals.
Geopolitics cannot be ignored. The fate of the investors entering Pakistan and which sector is receiving attention depends on the geopolitics. The Government visited and affirm the investors of profitable investment sectors presents in Pakistan to attract investment, particularly from Gulf Cooperation Council countries, and regional tensions can affect external financing costs, exchange-rate pressure, export demand, and investor sentiment.
However, geopolitical enthusiasm can open doors; but the sustainability of the project not only depends on the strategic partnership but also the commercial viability determines whether capital is actually deployed and whether the project survives over its full life.
PAGE: What is your perspective about Middle Eastern investment in Pakistan?
Altaf Hussain: My perspective is that Middle Eastern investment is a major welcoming opportunity for Pakistan, but it is more important to convert the diplomatic goodwill and announced commitments into commercially viable, transparent, and well-governed projects. As the Gulf increases its capital in different investments not only in its own country but also in her neighbouring countries to exploit full resources to get maximum profits and achieve its goals. Gulf capital can help Pakistan reduce reliance on short-term borrowing, develop infrastructure and natural resources, and create jobs but only if project selection and execution are disciplined.
Pakistan needs to attract Middle Eastern investors—especially from Saudi Arabia, the UAE, Qatar, and Kuwait to bring long-term capital, regional market access, and experience in energy, infrastructure, real estate, logistics, and resource development. Pakistan has positioned the Special Investment Facilitation Council (SIFC) as a “one-window” platform to accelerate foreign direct investment in sectors including IT, agriculture, energy, and mining.
Middle Eastern investment is strategically important and potentially transformative, particularly in energy, minerals, infrastructure, agriculture, and technology. But Pakistan should treat it as patient commercial capital, not merely geopolitical support. The real success measure will be completed projects, sustainable returns, jobs, exports, tax revenue, and reduced external financing pressure—not the size of memoranda signed.
PAGE: What is your standpoint on Saudi interest in the Reko Diq copper-gold project?
Altaf Hussain: Saudi interest in Reko Diq is strategically positive for Pakistan, but it should be welcomed as commercial, risk-adjusted investment rather than treated as a geopolitical favour. Saudi participation can strengthen financing, regional credibility, and long-term demand for Pakistani minerals; however, Pakistan must protect fiscal interests, local benefits, transparency, and Balochistan’s stake.
Reko Diq is one of the world’s largest undeveloped copper-gold deposits, with an estimated 37-year mine life and total capital investment of about US$8.83 billion. The main company working at Reko Diq is Barrick Mining Corporation (formerly Barrick Gold) a Canadian company, through its project company Reko Diq Mining Company (Private) Limited (RDMC). Barrick owns 50% of RDMC and is building and operating the copper-gold mine in Chagai District, Balochistan.
The Manara Minerals, backed by Saudi sovereign wealth has shown its interest to invest in Reko Diq mines which shows the importance and value of the mine in international mines and minerals markets. It’s a good sign for Pakistan that two international companies have shown interest in investment which could bring patient capital, mining-sector expertise, and access to Gulf and global mineral markets.
The potential benefits for Pakistan include:
- Large-scale foreign direct investment in a capital-intensive strategic sector.
- Foreign-exchange earnings from copper and gold exports.
- Infrastructure development around the project area, including roads, power, water, and logistics.
- Jobs and skills development, especially if local hiring and supplier development are enforced.
- Improved investor confidence, because Saudi participation may signal regional endorsement of Pakistan’s minerals policy.
Though Pakistan and Saudi has long term brotherly relationship but country’s interest should be evaluated on the same basis as any other investor. The maximum benefits must be achieved from any such investment to overcome country’s own financial crisis. The price paid for equity, governance rights, dividend policy, exit terms, environmental and social safeguards, and impact on Pakistan’s future upside. A minority equity stake can be beneficial if it brings capital without diluting Pakistan’s long-term economic interest or weakening accountability.
Pakistan should make a deal which provides maximum strategic upside as well as commercial and financial benefits. The Reko Diq project’s ownership already includes Barrick at 50%, three federal state-owned enterprises at 25%, and the Government of Balochistan at 25%; any Saudi stake must fit clearly within this structure and preserve the province’s rights.
The interest of Saudi investor becomes more fruitful when it becomes realistically operative. The law and order situation in the Balochistan is the biggest challenge for Pakistan and the tense and unpredictable terrorist attacks distract the foreign investors.
Only capital cannot deliver a mega-mining project. Pakistan must provide credible security, stable policy, community engagement, dispute-resolution mechanisms, and consistent implementation of agreements. Without these, even strong Saudi interest may not translate into timely production.
Reko Diq is located in Balochistan, so its legitimacy depends heavily on visible and fair local benefit. Pakistan should ensure employment, local procurement, training, environmental protection, water management, and transparent sharing of economic benefits with affected communities.
A project of this scale should not be perceived as extraction without development. Strong local participation is both an ethical obligation and a practical risk-control measure.
Saudi interest in Reko Diq is welcome and strategically sensible, especially because copper is far more important mineral as it has a large scale global usage like electrification, renewable energy, and technology supply chains.
Pakistan’s standpoint must be; welcome the capital, negotiate hard, protect national and provincial interests, and make security and governance the foundation of the project.