State Bank of Pakistan warns people to beware of Fake Investments
'Pakistan Times' National News Desk

ISLAMABAD: The State Bank of Pakistan has cautioned the General Public not to be misled by advertisements inviting investments in the so called lucrative schemes and businesses promising high rate of return.

"Such unscrupulous elements offer high rate of profit to customers and even pay for a short period but after collecting heavy deposits from public, they disappear with the public money," the State Bank warned the general public.

"Through such advertisements, some individuals, firms or companies, claim to be doing certain businesses or working on lucrative projects, brokers of commodities, foreign currencies and shares or agents of foreign brokers in the said fields and invite investments offering high rates of return," it added.

Another tactics used by unscrupulous elements are Multilevel Marketing and Pyramid schemes whereby new customers are required to bring more members in a geometrical progression.

"The process of membership continues and reaches a stage of saturation after which inflow of new members halts, which results ultimately in collapse of the whole structure," it said and added, only a few people on top of the pyramid make money and the rest
lose their stakes.

It is also to be noted that no one can invite and accept deposits or offer loans to general public through advertisements, unless duly authorized to do so under the law.

"The general public is, therefore, advised in their own interest to be careful while making any investment with such deceitful and unauthorized entities or persons and to verify the status and legal authority of such entities from relevant authorities," the State Bank warned.

The following addresses can be contacted for any query, information or suggestion: State Bank of Pakistan, Banking Policy Department, I.I. Chundrigar Road, Karachi; Phone: (021) 2453510, 2453550 and e-mail: syed.mansoor@sbp.org.pk or amjad.iqbal@sbp.org.pk●