The Managing Committee Members of the OICCI met the Prime Minister of Pakistan, Imran Khan, on Monday, March 7, 2021 at the Prime Minister House, Islamabad. Shaukat Tarin,- Minister for Finance and Revenue, Asad Umar, Minister for Planning Development & Special Initiatives, Abdul Razak Dawood, Adviser to the PM for Commerce And Investment, Chaudhry Fawad Hussain, Minister for Information & Broadcasting, Mr. Muhammad Azfar Ahsan, Chairman, Board of Investment (BOI) and Fareena Mazhar, Secretary, BOI also attended the meeting. The OICCI team included Ghias Uddin Khan, President, Amir Paracha, Vice President, CE/Secretary General M. Abdul Aleem and MC Members, Ahmed Zahid Zaheer, Markus Strohmeier, Erum Shakir, Ali Ahmed Khan and Ali Asghar Jamali.
Ghias Uddin Khan informed the Prime Minister that OICCI is the oldest and largest investment chamber in Pakistan focused on protecting interests of overseas investors and improving Pakistan’s economy. The member companies account for one-third of entire country’s tax and levies, provide employment to over a million people and are important contributor of Rs. 11 bn in CSR in 2021. OICCI also promotes the positive aspects of the country and the number of business opportunities it offers to potential foreign investors and trade missions. OICCI members have been significant investors as a group and made capital investment of over USD 18.5 billion since 2012.
The OICCI team present the key insights from the results of 2021 Perception and Investment Survey Report. OICCI is the custodian of Foreign Direct Investment, (FDI) shared with the Prime Minister the OICCI members perception of the FDI related issues, Business Challenges for all foreign investors in Pakistan and Recommendations to improve the economy of Pakistan.
OICCI President, Mr. Ghias Khan highlighted that foreign investors are largely positive on several business climate parameters and forecast healthy growth of their respective business entities in Pakistan with an overwhelming 80 percent of respondents willing to recommend new FDI in Pakistan. Mr. Khan also shared that “Whilst there is still dissatisfaction expressed by the respondents with several areas of doing business, the case for business growth potential and opportunities in Pakistan is supported by over 65 percent of survey respondents indicating their plans to make new investments, out of which 8 out of 10 respondents plan to invest more or similar amounts over the next 1 to 5 years, as compared to the investments they made in the previous corresponding period”.
OICCI members have once again emphasized on the need for predictable, consistent, and transparent policy framework and its fair implementation. Governance issues, including ‘Gap in Policy implementation’ continue to remain an area of serious concern along with increasing tax burden and cost of doing business. These factors not only hinder business environment but also contribute to lower FDI in the future.” The survey also highlighted sector-wise issues which OICCI intends to take up with the concerned stakeholders.
While engagement of the federal government with investors has slightly declined compared to the previous survey, OICCI members have acknowledged that senior functionaries in the federal government have shown understanding and commitment to resolve investors’ issues. Authorities in the provincial government of Sindh has shown improvement versus previous engagement levels. However, respondents have also mentioned that at times, policies and regulations tend to be inconsistent and abruptly introduced with ineffective enforcement. The performance of regulatory bodies also reveals a mixed perception and concerns have been expressed over the excessive regulatory environment in certain areas.
Largely positive feedback from foreign investors through PIS 2021 survey need to be leveraged by all the key stakeholders, especially those in the federal and provincial government, and institutions like Board of Investment, FBR, and other regulatory bodies.
Regular and structured engagement with foreign investors, along with a predictable, transparent, and consistent policy framework, simplifying the tax regime and increasing positive visibility of Pakistan at international forums will help in improving the perception of the business environment of Pakistan.
The Prime Minister, Imran Khan appreciated the contribution of OICCI members. The Prime Minister promised full support to OICCI in addressing their issues. The Prime Minister also appreciated the OICCI for sharing the recommendations for addressing investors’ concerns and assured that the government will act upon the recommendations.