Foreign investors contribute Rs1.2tr tax revenue

Foreign investors contributed Rs1.2 trillion in tax revenue and invested $3 billion in 2019, but the deepening economic and regulatory challenges could threaten attractiveness of Pakistan as a destination for future foreign direct investment (FDI).

The Overseas Investors Chamber of Commerce and Industry (OICCI), which represents leading 200 foreign investors in Pakistan from 35 countries, has released the consolidated financial contribution of its members in 2019 based on the feedback from its 150 members.

The foreign investors have contributed significantly to the gross domestic product (GDP) of Pakistan and have maintained the OICCI’s position as the largest chamber of commerce in terms of economic contribution in the country, said OICCI President Haroon Rashid, while referring to the chamber’s survey being conducted annually since 2009.

Elaborating on the key features of the OICCI 2019 Annual Economic Contribution Survey, Rashid said in 12 months of the year under review the OICCI members contributed over Rs1.2 trillion, or Rs5 billion each working day, to the tax revenue of Pakistan, which was approximately one-third of the total tax collection in the country.

During 2019, two OICCI members paid taxes in excess of Rs100 billion each. The five sectors contributing over 80% of the tax revenue from among OICCI members were energy, tobacco, fast-moving consumer goods (FMCG) and food, telecommunication and banking, he said.

OICCI Secretary-General M Abdul Aleem added that with an asset base of $120 billion, the OICCI members maintained their position as the leading foreign investors in Pakistan in 2019 with new investments of over $3 billion mainly in the energy, telecom and chemical sectors.

“OICCI members believe in Pakistan and have always been leading economic contributors to the country, however, we need to take note of emerging challenges that are affecting the ability of OICCI members to keep on attracting additional investment, for example, currency devaluation,” said Rashid.

He also pointed out that there was growing concern among the OICCI members over the uncertain regulatory and operating environment which, if not addressed, could threaten the attractiveness of Pakistan as a destination for FDI. Besides the monetary contribution, the OICCI members also played a leading role in the transfer of technology, digital transformation, introducing latest inventions and sharing of best practices in manufacturing operations, supply chain and marketing of internationally renowned brands, he added.

Published in The Express Tribune, July 16^th, 2020.

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