Immigration is a process through which individuals become permanent residents or citizens of foreign countries. People usually immigrate from developing or third world countries to the developed countries for living a better-quality life and availing better opportunities of education and employment.
During the past three decades, with the advancement in technology, the immigration market has witnessed a significant growth in Pakistan; especially to developed countries like Australia, Canada, UK and USA. Currently, Pakistan has the sixth largest diaspora1 in the world.
Going abroad involves fulfilling many legal, procedural technical and other requirements, which the common citizens are unable to understand and fulfill on their own. As a result, the immigration applications of such people usually get rejected. Therefore, they need proper guidance and consultancy to successfully achieve their objective. This situation gives rise to demand for “Education/Immigration Consultants” firms which can provide legal, procedural, technical and other related guidance to the people seeking immigration and/or foreign education.
Pakistan, with 64% of its population under the age of 30 years, has one of the largest youth populations in the world. Majority of the young people wishes to get education and employment opportunities in developed countries; so as to secure a bright future for them. Growing international demand for professionals in the foreign world creates an attractive opportunity to start a business of Education/Immigration Consultants firm.
This pre-feasibility document provides details for setting up an Education/ Immigration Consultants firm. The proposed firm has an annual capacity of handling 104 applications from the clients. Capacity utilization in the first year of business operations is assumed to be 40%, whereas, the maximum capacity utilization is assumed to be 85%; to be achieved in the ten years of operations.
The Education/Immigration Consultants firm is proposed to be ideally located in metropolitan cities like Karachi, Lahore, Islamabad, Faisalabad, Peshawar, Quetta, Sialkot, Multan, Hyderabad, etc. These cities are preferred due to presence of large potential customer base and easy availability of qualified professionals and trainers.
The proposed project requires a total investment of PKR 6.50 million. This includes capital investment of PKR 4.95 million and working capital of PKR. 1.6 million. This project is financed through 100% equity. The Net Present Value (NPV) of project is PKR 79.52 million with an Internal Rate of Return (IRR) of 95% and a Payback period of 1.71 years. Further, this project is expected to generate Gross Profit (GP) ratio ranging from of 69% to 88% and Net Profit (NP) ratio ranging from 11% to 48% during the projection period of ten years. The proposed project will achieve its estimated breakeven point at capacity of 30% (31 cases) with breakeven revenue of PKR 16.23 million.
The proposed project may also be established using leveraged financing. At 50% financing at a cost of KIBOR+3%, the proposed business provides Net Present Value (NPV) of PKR 99.04 million, Internal Rate of Return (IRR) of 94% and Payback period of 1.72 years. Further, this project is expected to generate Net Profit (NP) ratio ranging from 10% to 48% during the projection period of ten years. The proposed project will achieve its estimated breakeven point at capacity of 32 cases with breakeven revenue of PKR 16.86 million.
The proposed project will provide employment opportunities to 13 to 15 people. High return on investment and steady growth of business is expected with the professionals having some prior experience or education in the related field of immigration business. The legal business status of this project is proposed as Partnership Concern. Further it may also be established as Sole Proprietorship.