Understanding PSX for Overseas Investors

### High Dividend Yields PSX companies pay some of the highest dividends in emerging markets: - **OGDC:** 12-15% yield - **PPL:** 10-12% yield - **HBL/UBL:** 8-10% yield - **Fertilizer stocks:** 10-14% yield ### Undervalued Companies Many PSX stocks trade at P/E ratios of 3-5x, compared to 15-20x in developed markets. ### Currency Hedge Investing in PKR-denominated assets hedges against rupee depreciation if you plan to return to Pakistan.

### Option 1: Roshan Digital Account (RDA) The easiest method for overseas Pakistanis: 1. Choose an RDA bank (Meezan, HBL, UBL recommended) 2. Apply online with NICOP/passport 3. Get approved in 3-5 days 4. Link to CDC Investor Account ### Option 2: Direct CDC Account 1. Choose a PSX broker (AKD, Arif Habib, Insight Securities) 2. Submit forms remotely (many accept couriered documents) 3. Provide NICOP copy, proof of address, photos 4. Fund via wire transfer

### For Filers - **Capital gains:** 10% (if sold within 12 months) - **Dividends:** 15% withholding (adjustable against tax) ### For Non-Filers - **Capital gains:** 15% - **Dividends:** 30% withholding **Pro tip:** File your tax return in Pakistan to access lower rates.

### 1. E&P (Exploration & Production) - OGDC, PPL, MARI - High dividends, dollar-linked revenues ### 2. Fertilizer - FFC, ENGRO, AGL - Stable demand, consistent dividends ### 3. Technology - SYS, TRG, AVN - Growth potential, export earnings ### 4. Banks - HBL, UBL, MCB - Trading at book value or below

1. **Not diversifying:** Don't put everything in one stock 2. **Panic selling:** PSX is volatile long-term 3. **Ignoring dividends:** Reinvest them for compounding 4. **Not researching:** Read annual reports before buying

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