OICCI voices concern over political deadlock
States investor’s confidence shattered with ongoing crisis.
KARACHI:
The current political standoff in Islamabad has placed a considerable negative impact on foreign investors’ confidence, an Overseas Investors Chamber of Commerce and Industry (OICCI) survey has revealed on Friday.
The brief survey that was conducted in the first week of September 2014 disclosed that the investors’ confidence for Foreign Direct Investment (FDI) into Pakistan has been dented by the ongoing standoff in Islamabad.
OICCI is a reputable association of over 195 multinationals operating in Pakistan, whose surveys indicate the general mood of the foreign companies.
After the Karachi airport attack, the political deadlock in Islamabad has negatively impacted ongoing business activities and the future investment plans, OICCI members said.
Over 50% of the respondents of the survey indicated that the recent events have caused postponement or cancellation of scheduled business meetings in Pakistan with overseas shareholders and regional management.
About a third of the respondents expect a fresh review of their planned new investment for the next three years. Half of the respondents expressed the opinion that such incidents affect their ability to retain critical talent in Pakistan.
In terms of its immediate impact on the ongoing business operations and product distribution, 40% of the respondents expect decline in sales and profitability with reduction in tax payments. Majority of the respondents (62%) foresee serious damage to the 2014-15 fiscal targets of the government, suggesting that this may also impact the recently launched Vision 2025 targets of the government.
“OICCI believes in Pakistan and that brief surveys like this are not exhaustive but are meant to reflect an immediate assessment of the foreign investors of the current events in Pakistan,” OICCI President Asad S. Jafar said commenting on the survey findings.
Jafar added that the authorities, both at the federal and provincial levels, would continue to address the key issues affecting business and investment as they require strong commitment from the authorities to achieve the results of Vision 2025.
Published in The Express Tribune, September 6th, 2014.
The current political standoff in Islamabad has placed a considerable negative impact on foreign investors’ confidence, an Overseas Investors Chamber of Commerce and Industry (OICCI) survey has revealed on Friday.
The brief survey that was conducted in the first week of September 2014 disclosed that the investors’ confidence for Foreign Direct Investment (FDI) into Pakistan has been dented by the ongoing standoff in Islamabad.
OICCI is a reputable association of over 195 multinationals operating in Pakistan, whose surveys indicate the general mood of the foreign companies.
After the Karachi airport attack, the political deadlock in Islamabad has negatively impacted ongoing business activities and the future investment plans, OICCI members said.
Over 50% of the respondents of the survey indicated that the recent events have caused postponement or cancellation of scheduled business meetings in Pakistan with overseas shareholders and regional management.
About a third of the respondents expect a fresh review of their planned new investment for the next three years. Half of the respondents expressed the opinion that such incidents affect their ability to retain critical talent in Pakistan.
In terms of its immediate impact on the ongoing business operations and product distribution, 40% of the respondents expect decline in sales and profitability with reduction in tax payments. Majority of the respondents (62%) foresee serious damage to the 2014-15 fiscal targets of the government, suggesting that this may also impact the recently launched Vision 2025 targets of the government.
“OICCI believes in Pakistan and that brief surveys like this are not exhaustive but are meant to reflect an immediate assessment of the foreign investors of the current events in Pakistan,” OICCI President Asad S. Jafar said commenting on the survey findings.
Jafar added that the authorities, both at the federal and provincial levels, would continue to address the key issues affecting business and investment as they require strong commitment from the authorities to achieve the results of Vision 2025.
Published in The Express Tribune, September 6th, 2014.