If gold feels too expensive, consider these three asset classes that also offer protection against inflation and currency devaluation.
1. Foreign Currency (USD/GBP)
Holding stable foreign currency is the most direct hedge against PKR devaluation. While the government strictly regulates physical foreign currency hoarding, maintaining legal foreign currency accounts (FE-25) is a common strategy for businesses and expatriates.
2. Prize Bonds
Backed by the State Bank of Pakistan, prize bonds are essentially a zero-interest lottery. Your principal is 100% secure, and you have the chance to win massive cash prizes. They are highly liquid and act as a safe parking spot for cash, though inflation eats away at the real value over time.
3. Real Estate Investment Trusts (REITs)
If you cannot afford a commercial property, REITs allow you to buy shares in a company that owns and operates income-generating real estate in Pakistan. It offers the passive income of property with the liquidity of a stock.