KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has elected Irfan Siddiqui as its president for the 2021 term at its annual general meeting held on Monday. Siddiqui, who currently serves as the President and CEO of Meezan Bank Limited, will lead the chamber, which represents foreign investors in Pakistan.
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Foreign investors contribute Rs16 billion for minimizing coronavirus impact
KARACHI: The foreign investors operating in Pakistan have contributed Rs16 billion in different CSR activities and for containment of the negative impact of coronavirus.
In addition to monetary contributions the CSR activities of OICCI members included investment of their employees’ time in different value adding social activities across Pakistan with the underlying commitment to uplift the underprivileged strata of the society and support them during this most challenging time in recent memory brought about by the advent of the Corona pandemic, a statement said on Wednesday.
About 100 of the leading foreign investors, members of the Overseas Investors Chamber of Commerce and Industry (OICCI), actively participated in support of the GOP’s effort to fight the pandemic of COVID-19, without stepping back from their continuing commitment to CSR activities which benefit the marginalized communities across the country.
Haroon Rashid, President OICCI applauded: “OICCI members who have been leading the contribution towards CSR initiatives and are recognized as a role model to motivate other businesses and affluent individuals“.
“Over the last few years, there has been a noticeable enhancement in the sustainability and CSR initiatives by the OICCI members through a proactive engagement between business and all stakeholders in society. OICCI members have adopted the best CSR and Sustainability practices, largely in line with the United Nations Sustainable Development Goals (UN SDGs) to meet the growing needs of the society,” Haroon added.
The annual Corporate Social Responsibility (CSR) Report 2019-2020 brings out the essence of the CSR activities of about half of OICCI members who during 2019-20, collectively, invested about PKR 8 billion on CSR related activities, excluding those on COVID-19 mentioned above, and reached out to around 62 million direct beneficiaries throughout Pakistan.
OICCI members and their employees spent around 1.5 million man-hours and partnered with 160 social and development sector organizations in fulfilling their unique CSR programs.
The reach of the CSR activities touched all provinces and the geographic distribution was 29% in Sindh, 26% in Punjab, 14% in Khyber Pakhtunkhwa, 12% in Baluchistan, 6% in FATA, and 8% each in Gilgit-Baltistan and Azad Kashmir.
In terms of specific UN SDGs, 79% of the OICCI members focused on (i) Health and Well-Being and (ii) Quality Education, especially new primary and secondary school facilities and vocational training programs for skills development.
Many of the members also actively supported health and nutrition related initiatives through donations to reputable hospitals, medical care camps and health awareness campaigns.
OICCI in a statement highlighted that the March 2020 pandemic challenge to OICCI members, and their stakeholders, was enormous and is still continuing.
However, due to international outreach of OICCI members, they led from the front and shared the best practices for protecting the health and wellbeing of their employees, business partners and other stakeholders.
None of the OICCI members laid off their workers due to slow down in the business activity at the outbreak of the pandemic.
Most of the OICCI members positively responded to the Government of Pakistan’s call for support in containing the spread of the pandemic, protecting the health and supporting economic needs of the underprivileged populace in the face of COVID-19 immediate challenge, and contributed about PKR 7.8 billion to various pandemic focused containment causes.
It is pertinent to mention that 63% of the members were focused on Gender Equality in support of ‘OICCI Women’ initiative which is gaining momentum since its launch in 2017. “We believe the OICCI Women initiative could become a motivating factor for other businesses in Pakistan to raise the level of women participation, thereby contributing towards a rapid economic growth of the country,” M. Abdul Aleem, Secretary General OICCI commented.
OICCI Corporate Social Responsibility (CSR) Report 2019-2020 released yesterday gives details of the contributions of the member companies, working across the country, in a number of diverse social sectors.
OICCI is the collective body of top 200 foreign investors in Pakistan, belonging to 35 countries, who are also the largest contributor to the economy of Pakistan besides being the largest foreign investors.
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Foreign investors express concerns over lack of attention on IPR protection
KARACHI: Foreign investors operating in Pakistan have expressed concerns over lack of attention by government authorities on protection of Intellectual Property Rights (IPRs).
The concerns have been expressed in a survey conducted by Overseas Investors Chamber of Commerce and Industry (OICCI).
The OICCI announced the key findings of its latest IPR Survey on Wednesday. The OICCI IPR Survey 2020 conducted during September-October, which reflected the assessment of the foreign investors, on the state of intellectual property protection in Pakistan.
Effective protection of IPR comprising of Copyrights, Patents and Trade Mark is critical for attracting and retaining FDI (Foreign Direct Investment) in the country.
“OICCI IPR Survey 2020 respondents have expressed concern that IPR protection does not attract due attention from some key stakeholders, including the government, Law Enforcement authorities (LEA), media and even the consumers,” according to the study.
Long drawn judicial proceedings, lack of awareness and appreciation about IPR, and lengthy timelines for granting IP rights were some of the key concerns highlighted in the survey.
Overall 40 percent of the respondents indicated that it takes 1 to 3 years to resolve a standard IPR dispute. Respondents also expressed concern regarding the penalty on IPR violation being insufficient to act as a deterrent and the IP Tribunals not being fully functional.
Currently, over 90 percent of the OICCI members prefer reliance on their own resources for monitoring threat of IPR violations. However, there is a great desire for all the IP owners to work in partnership with the government authorities for a better IPR regime in Pakistan.
The foreign investors participating in the survey expect that IPR regulator in Pakistan, IPOP, would take the lead in strengthening IPR regime in Pakistan; automate and fast track process of registering IP; massively promote awareness on the importance of IPR and its impact for business/investment; upgrade skills and motivate LEA to proactively arrest the abuse of IPR.
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Market based exchange rate helps shrinking current account deficit: SBP governor
KARACHI: Dr Reza Baqir, Governor of State Bank of Pakistan (SBP) has said that market based exchange rate helped shrinking current account deficit.
In an interactive session with leading foreign investors, members of the Overseas Investors Chamber of Commerce and Industry (OICCI), he shared an overview of the current Economic Outlook of Pakistan and informed: “since, June 2019, Pakistan has transitioned to a market-based exchange rate regime, resulting for the first time ever in an orderly two-way movement of exchange rates in the country, which has led to a significant shrinking of the current account deficit, and better fundamentals facilitated capital inflows.”
The fiscal deficit narrowed to 3.8 percent of GDP in July-March FY20 with the current account balance in surplus for the first time since 2016”.
He added: “a year ago SBP was being perceived as inflicting tough stabilization measures after Pakistan had successfully started an economic reform program to address external and fiscal imbalances and later after the onset of COVID-19 the Government and central bank gave a timely and calibrated economic response without compromising buffers and as a result today the focus is on economic growth of the country,” a statement issued by OICCI quoted SBP governor as saying.
Dr Baqir also shared that overall Rs1.73 trillion or 4.1 percent of the GDP of Pakistan was injected by SBP in the economy to support individuals and businesses during COVID-19 through various proactive measures, including dramatic reduction in interest rates from 13.25 percent to 7 percent, loan deferment, employment support and Rozgar Schemes.
He further added SBP is taking appropriate and timely actions to address the ever changing economic environment.
President OICCI, Haroon Rashid highlighted the significant economic contribution of foreign investors at OICCI, who are among the largest economic stakeholders and have invested over $ 16 billion in the past eight years and continue to have a positive view of the opportunities for investment despite the ongoing challenging economic environment in the country.
OICCI shared with Dr Reza Baqir the key concerns of OICCI members, including delays in approval of forex payments and cumbersome documentation requirements and sought the Governor’s support in the light of SBP policy to facilitate FDI through improving Ease of Doing Business in Pakistan.
Dr. Reza Baqir appreciated the contribution of OICCI members to the national exchequer and encouraged all members to figure out ways to increase exports and adopt import substitution practices, as it was a critical step towards moving the country out of poverty.
“SBP is moving towards digitalization of payment processes and proactive engagement that will address the major issues systematically and facilitate the business community,” informed the Governor.
Dr. Reza also mentioned that through an online case look-up portal, it is now possible for companies to monitor the progress of their respective cases submitted to SBP with increased transparency.
He agreed on the need for continuous dialogue with the OICCI members and invited the OICCI members to meet the SBP leadership at regular intervals for timely resolution of their issues.
While concluding the session, Haroon Rashid commented “OICCI members appreciated the SBP efforts towards continuous improvement in the economy”, and presented a comprehensive list of recommendations to facilitate ease of doing business in Pakistan.
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OICCI expresses dismay over FBR action against mobile operator
KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) on Thursday expressed its shock and dismay over action taken by the tax authorities against Pakistan’s leading mobile operator.
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Foreign investors express concern over high turnover tax
KARACHI: Foreign investors have expressed concerns over high rate of turnover tax rate, especially for those sectors where margins are very low.
Overseas Investors’ Chamber of Commerce and Industry (OICCI) expressed this concern at an interactive session with Dr. Abdul Hafeez Sheikh held on September 12, 2020, a statement said on Monday.
The statement said that the foreign investors expressed concern on the continuation of the high rate of turnover tax especially for high turnover but low margin sectors like petroleum and chemical businesses.
OICCI members also vented concern on the recent incident on the Lahore-Sialkot ring road which has damaged the morale of the stakeholders, who were otherwise satisfied with the highly improved security environment in Pakistan.
OICCI President Haroon Rashid, welcomed Dr Abdul Hafeez Sheikh and briefed him about the critical role of OICCI and its members in the economy of Pakistan and shared that delays in tax refunds and some other issues are creating hurdles in bringing Foreign Direct Investment (FDI) in the country, as well as not being in sync with the government’s agenda of Ease of Doing Business (EODB).
The participants representing the major foreign investors operating in the country appreciated the GOP’s effort in successfully overcoming the Covid 19 challenge to the economy and taking appropriate measures for the health and safety of the people of Pakistan.
OICCI members complimented the Advisor on Finance for the constructive approach adopted during the 2020-21 Budgeting process where the tariff rationalization of over 1600 items, together with rationalization of withholding taxes at import stage and many other measures contributing towards Ease of Doing Business.
OICCI also appreciated the recent launch of Roshan Digital Account for overseas Pakistanis as a step in the right direction.
Haroon Rasheed recommended that the government should take a collective view of the measures to encourage foreign investment in Pakistan, including appointing a focal ministry for streamlining operating issues of foreign investors.
OICCI strongly recommended that the government should ensure that incentives once given to foreign investors, for example vide Section 65 of the IT Ordinance 2001 in respect of new investments, should not be withdrawn while the respective projects are in implementation phase. OICCI also requested for orderly and prompt settlement of long pending tax refunds and circular debt.
OICCI members were optimistic that the country can attract large FDI by ensuring predictable, consistent and transparent policy framework and its implementation.
The participants also sought Finance Advisor review of the recent announcement that investment in the National Saving scheme will not be available to retirement funds after 2022.
On questions from the audience, Finance Advisor assured that the GIDC issue will be managed amicably in accordance with the Supreme Court decision and that the FBR will be more proactive and will regularly engage with key stakeholders like OICCI members in resolving all legitimate issues especially on tax refunds.
At the meeting Advisor to PM on Finance Dr Abdul Hafeez Sheikh gave a comprehensive overview of the challenges faced by the economy in the past two years and how the GOP has successfully managed to stabilize the economy which is now on a recovery path.
Dr Hafeez Shaikh added that the growth trend in some industries like cement, automobile and fertilizer and rapid growth noticed at PSX are very encouraging and should give confidence to investors.
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OICCI members pay one third of total tax collection
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) said that the foreign investors operating in Pakistan and multinational companies (MNCs) have contributed around 1/3rd of the total tax collection by Federal Board of Revenue (FBR) during fiscal year 2019/2020.
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Foreign investors express satisfaction on security environment
KARACHI: The foreign investors operating in Pakistan have showed satisfaction over security environment especially after quick response of law enforcement agency against failed terror attack on Pakistan Stock Exchange (PSX).
“The smooth and professional handling of the brazen attack on Pakistan Stock Exchange on June 29, and restoring order within a very short time, is a testimony of the OICCI members’ confidence in the ability of the LEAs to professionally combat any threat to life and property in the country, said Haroon Rashid, President Overseas Investors Chamber of Commerce and Industry (OICCI) while commenting on latest findings of security survey,
OICCI is the largest chamber in terms of economic contribution and representing top 200 foreign investors in Pakistan, has released the results of its latest Annual Security survey 2020, covering feedback on the security environment from July 2019 to June 2020.
Overall, the foreign investors have shown high level of satisfaction on the fast improving security environment and have also appreciated the performance of law enforcement agencies (LEAs) in the main business centers of Pakistan, Karachi and Lahore, raising the security satisfaction profile of the two cities and bringing them at par with other megacities in the region.
The OICCI President said: “Foreign investors are not deterred by isolated incidences and continue to take a holistic view of the operating environment, which, OICCI members perceive to be highly positive showing continuous improvement.”
The survey respondents included CEOs and senior management of member organizations, and was participated by 70 per cent of the OICCI’s 200 members, who belong to 35 countries and operate in 14 key sectors of the economy in Pakistan.
It may be noted that over two third of the OICCI members have their head offices in Karachi with operations all over country. The survey was conducted from May 15th till June 22nd.
OICCI 2020 Security Survey indicates that the foreign investors, overall, are impressed with further improvement in the security environment over the past twelve months, since July 2019, especially in Karachi and Lahore, with noticeable improvement in other business centers as well.
While giving assessment of the overall security situation, 60 percent of the respondents have reported improved security environment for own and Customer’s Business, as well as for their respective suppliers and employees.
Irfan Siddiqui, OICCI Vice President pointed out: “this improvement is over and above the already improved security environment last year, and the continuous improvement recorded in the OICCI members annual security surveys since 2015.”
He further added that It is highly encouraging that despite many disruptions during the past twelve months, due to Azadi March in December 2019, border tension with India during Q3 2019, and subsequent travel restriction since end March 2020 due to COVID 19, the visit of foreign nationals visiting Pakistan for OICCI members business, pre COVID 19, showed a healthy increase, as over 40 percent respondents reported more visitors than last year, with 26 percent hosting more than 50 visitors and most respondents getting between 20 and 50 visitors.
The foreign business visitors were mainly from China, UK, USA, UAE, as well as other European and Asian countries.
Due to the sustained improvement of the security environment, OICCI members reported that over 90 percent of the Board and management meetings of their Pakistan business operations, involving HQ and/or Regional Management, were held within the country.
In terms of serious crimes, 87 percent respondents indicated a decrease over last year in Karachi and Lahore. However, the survey respondents have expressed concern on the increasing trend of street crimes.
All in all, 37 percent respondents in Karachi and 27 percent in Lahore reported concern on increasing street crimes.
According to the results Islamabad experienced the lowest increase in street crimes among the key business centers.
There was also a thumbs up for the LEAs as, by and large, the foreign investors were satisfied with the performance of Law Enforcement Agencies, with over 90 percent expressing satisfaction in their interactions with Karachi and Lahore Police, Sindh Rangers, Punjab Police and CPLC and 84% for Sindh Police.
OICCI Security survey is very comprehensive and gives a detailed feedback of a large number of foreign investors operating in Pakistan on various aspect of doing business connected with security and its impact on their operation which is regularly sought by diplomats and security professionals.
Established in 1860, Overseas Investors Chamber of Commerce and Industry (OICCI), is the largest Chamber of Commerce in Pakistan based on economic contribution in the form of taxes and investment by its members and is the collective voice of over top 200 foreign investors in Pakistan, including over 50 Fortune 500 companies, who contribute about one third of the total tax collection in the country and a significant portion of the GDP.
Coming from 35 countries and working in 14 key sectors of the economy, OICCI members are leaders not only in economic activities and investment but are also thought leaders in transfer of technology and in CSR activities.
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Haroon Rashid elected as President OICCI
KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) has elected Haroon Rashid as president of the chamber with effect from July 01, 2020.
Haroon Rashid is Chief Executive Officer of Shell Pakistan Limited. His appointment came following a successful tenure of Shazad Dada, who resigned as the President of OICCI after resigning from Standard Chartered Bank and taking over as President of United Bank Limited.
Irfan Siddiqui has been elected as the Vice President of the OICCI from July 1, 2020. Irfan is the founding President/CEO of Meezan Bank Limited.
He initiated the formation of Al-Meezan Investment Bank in 1997, which was converted into a full-fledged scheduled Islamic Commercial Bank in May 2002 – the first ever Islamic Commercial banking license given in Pakistan.
Commenting on his appointment as the President of OICCI, Haroon Rashid was very upbeat and said, “It is really an honor to have been elected as the President of a prestigious organization like the OICCI, which is the largest chamber in the country in terms of economic contribution, contributing over one third of all government levies and is also the largest foreign investor in the country”.
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Exemption from withholding tax on foreign remittances may not practical for banks
The Pakistani government has announced a significant tax relief measure, granting withholding tax exemption on the transfer of foreign remittances to Pak Rupee (PKR) accounts. However, tax experts have raised concerns about the practical implementation of this exemption, particularly regarding the bifurcation of transactions for banks.
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