Pakistan visible on foreign investors’ radar

OICCI officials predict promising investment climate in the future

KARACHI: Pakistan remains visible on foreign investors’ radar globally, despite the ongoing political uncertainty in the country, Overseas Investors Chamber of Commerce and Industry (OICCI) representatives said on Tuesday.

“Pakistan is a great opportunity to invest,” OICCI President Bruno Olierhoek said in his first media meet-up on Tuesday. He was made president of the foreign investors’ body for a one-year term at the outset of February.

“Pakistan’s (mildly positive) image is not reflecting the on-ground reality …OICCI members are more positive about the country than average businessmen because they have a long-term perspective on the country,” he said.



Pakistan has attracted foreign direct investment (FDI) worth $8.58 billion in different economic sectors during the last five years, with OICCI members having invested $7.72 billion out of that amount, he added.

“Pakistan has the potential of attracting much more FDI. Currently, only 25% of the (available) investment potential is being realised,” said Olierhoek, who is also Chief Executive Officer of Nestlé Pakistan. He urged the authorities to play their role in increasing the ease of doing business, specifically for the documented sectors of the economy. “Don’t facilitate businesses in the informal and undocumented sectors of the economy as it would increase the problems,” he said.

OICCI Secretary General M Abdul Aleem said massive improvement in security and increased availability of electricity have helped boost foreign investors’ confidence in Pakistan. “Pakistan is on the global foreign investors’ map …this is an economy with a huge middle class of 70%  people. It should grow at 7-8% (per annum)…and for this the government should provide incentives to make investors jump on,” he said.

“Tax refunds remain the number one issue for OICCI members,” he said, adding the amount of stuck tax refunds stood at Rs47 billion in February. Otherwise, the members pay Rs4 billion per day in taxes to the national exchequer.

Budget proposals

In its budget proposals to the federal and provincial (Punjab and Sindh) governments, the foreign investors’ body submitted that the government should eliminate 3-4% super tax as per its promise made initially. It should also reduce the corporate tax rate to 25% from over 30% at present, align sales tax rate to 13% from 17% at present and remove conditions like tax on undistributed profits and tax on bonus shares etc.



OICCI also proposed more incentives on new FDI including in the services sector and timely resolution of tax matters among provinces and the Federal Board of Revenue (FBR). The Workers Profits Participation Fund issue, for example, has been lingering for quite some time.

It also asked for re-aligning minimum tax rates, re-vamping the withholding tax regime from current 55 rates to just five and no regulatory duty on raw materials.

CPEC investment

OICCI perception and investment survey 2017 said its members remain bullish on the multibillion dollar Chinese investment in Pakistan under the banner of China Pakistan Economic Corridor (CPEC). Some 88% of its members find CPEC investments favourable which would leave a positive impact on the investment climate in Pakistan. 

Published in The Express Tribune, March 14^th, 2018.

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