Foreign investors pay Rs1.4 trillion as annual tax revenue in Pakistan

Foreign investors pay Rs1.4 trillion as annual tax revenue in Pakistan

KARACHI: The foreign firms operating in Pakistan have paid around Rs1.4 trillion as duty and taxes during fiscal year 2020/2021, said Overseas Investors Chamber of Commerce and Industry (OICCI) on Monday.

The OICCI is the chamber of leading over 200 foreign investors in Pakistan belonging to 35 countries. It released the consolidated financial contribution of its members for the year 2020 based on feedback from 170 members, 50 of whom are subsidiaries of Fortune 500 companies.

The foreign investors have contributed significantly towards the GDP of the country and have maintained the OICCI position as the largest chamber of commerce in terms of economic contribution in the country. This comprehensive survey is being conducted annually since 2009.

Elaborating on the key features of the OICCI 2020 Economic Contribution survey, Irfan Siddiqui, President OICCI highlighted that “we are proud that in the past twelve months, OICCI members, despite very challenging and uncertain business environment due to COVID-19 impact on the business and life of people globally and in Pakistan, contributed over Rs 1.4 trillion, or approximately Rs five billion each working day, towards the tax revenue of Pakistan, approximately one third of the total tax collection in the country.  Two of the OICCI members paid taxes in excess of Rs 100 billion each “.

Commenting on the significant contribution of foreign investors in the economy of Pakistan, Irfan Siddiqui added “OICCI members believe in Pakistan and going forward are keen for playing a more prominent role in a growing economy supported by a predictable, transparent and stable policy framework and a business friendly regulatory and operating environment”. 

OICCI members have in the past nine years invested over US $ 18 Billion, largely in the Energy, Telecom, Chemicals, Food /FMCG and Banking sectors. “With an asset base of US $ 137 Billion,” Secretary General, OICCI, M Abdul Aleem added,” OICCI members’ maintained their position as the leading investors in Pakistan during 2020 with new investments of over US $ 2.4 Billion mainly in the Energy, Telecom and Chemicals sectors.”

Besides the monetary contribution, OICCI members also play a leading role in the transfer of technology, digital transformation, introducing latest inventions and sharing of best practices in the field of manufacturing operation, supply chain and marketing of internationally renowned brands.

Moreover, OICCI members, as a group, are the largest contributor towards the social sectors. In the last one-year OICCI members contributed Rs 8 billion to social initiatives, benefiting 62 million people throughout the country, and also contributed an additional Rs 8 billion for the various government and private sector COVID-19 containing activities.

In conclusion, OICCI Secretary General observed that “Pakistan suffers from negative perception which is largely uncalled for, requiring authorities to work in partnership with serious stakeholders, like OICCI, to ensure the country gets its due share of the significant FDI coming to this region.”