Overseas Investors’ Chamber of Commerce and Industry (OICCI) has expressed concern about the threat to business continuity in Pakistan.
The threats identified by the chamber are a combination of economic, political, and natural crises affecting the economy.
The chamber has urged for an active forum for government and the private sector to interact and work together on actionable reforms to address these issues before serious damage is done to the economic well-being of the country.
The lack of ownership in promoting foreign investment and reducing issues for foreign investors is a major concern for the OICCI.
Many organizations in Pakistan are facing the threat of business continuity due to various political and economic crises, including supply chain disruptions, catastrophic floods, and political uncertainty.
The OICCI urged the government and private sector to interact and collaborate on actionable reforms to address these challenges before serious damage is done to the country’s economy.
OICCI is concerned about the lack of ownership in furthering foreign direct investment (FDI) and reducing issues for foreign investors. The organization believes that stakeholders need to work towards one collective vision of making Pakistan beneficial for all, fueled by the right economic policies and reforms.
One of the major concerns for OICCI is the remittance of dividends pending for over a year, which is affecting foreign investors’ operations, such as pharmaceutical and oil marketing companies.
OICCI has proposed various options to State Bank of Pakistan (SBP) Governor to address declining confidence in foreign investors, including remitting pending dividends in instalments or allowing them to be invested in a profit-generating bank account.
OICCI has also recommended simplifying the tax regime, broadening the tax base, removing the one-time burden of Super Tax from the organized sector, and increasing the tax-free income.
The organization believes that broadening the tax base and collecting taxes from all segments of the economy, especially the trade and agriculture sector, as per their share in the GDP, will help improve the economy’s situation.
With the current FDI level less than half a percent of the GDP, OICCI is pushing for a predictable, consistent, and transparent policy framework to make Pakistan a foreign investment-friendly country.
The organization estimates that most businesses in Pakistan, including foreign investors, will be affected and show subdued fiscal results due to the recent World Bank forecast of 0.4 percent GDP growth during the current fiscal year.
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