Foreign Investors’ Attitude Towards Pakistan Significant Improvement: OICCI Survey

Overseas Investors Chamber of Commerce and Industry (OICCI), the joint voice of the best foreign investors in Pakistan, has announced the results of the biannual “Perception and Investment Survey 2021”.

The survey results offer a range of insights that shed light on OICCI members’ increased confidence in the country’s growth potential and in some areas for government attention.

OICCI President Ghias Khan, in a meeting with the media representative today, shared the salient features of the survey and emphasized that foreign investors are largely positive on various business climate parameters. OICCI members forecast the healthy growth of their business establishments in Pakistan, with an overwhelming 80 percent of respondents willing to offer new FDI in Pakistan.

Ghias Khan added: “The potential and opportunities for business development in Pakistan are supported by more than 65% of respondents who express plans to invest in new investments, and 8 out of 10 respondents plan to invest more or a similar amount next year. It is between 1 and 5 years for their previous investments.

As Pakistan is ahead of India, Thailand, Vietnam, Bangladesh, Sri Lanka and the Philippines in the region, foreign investors’ perceptions of investment and operating conditions in Pakistan have improved significantly compared to the previous survey. , but lags behind Indonesia, Malaysia, the UAE and China.

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Respondents were favored by measures that facilitated business operations, such as improved banking infrastructure, access to local financing routes and repatriation of profits, and other issues. However, concerns have been raised about Pakistan’s ease of operation and perception.

CE/Secretary General, OICCI Abdul Aleem said, “OICCI members once again stressed the need for a predictable, coherent and transparent policy framework and its fair implementation. Governance issues, including the ‘gap in policy enforcement’, remain an area of serious concern, along with the rising tax burden and cost of doing business.

These factors not only hinder the business environment, but also lead to a reduction in FDI in the future. The survey also highlighted issues in the sectors that OICCI plans to address with relevant stakeholders.

Although the Federal Government’s relationship with investors has declined slightly compared to the previous survey, OICCI members acknowledged that senior federal government officials have shown understanding and commitment in addressing investor concerns.

Sindh provincial government officials have made progress compared to previous levels of participation. However, respondents also noted that sometimes policies and rules are contradictory and sudden with ineffective implementation. Regulatory performance is also mixed, with concerns about excessive regulatory environments in certain areas.

As a result, OICCI Vice President Amir Paracha said: “Looking forward, we believe that the positive feedback from foreign investors through the PIS 2021 survey should be used by all key stakeholders, especially the federal and provincial governments and those in government. Institutions such as the Investment Council, the FBI and other regulators.

In order for Pakistan to accelerate its growth and attract large amounts of foreign direct investment, the issues identified must be addressed as a priority and opportunities must be explored quickly and decisively.

To achieve this, a regular and structured relationship with foreign investors is essential, along with a predictable, transparent and consistent policy framework. Simplifying the tax regime and increasing Pakistan’s positive image in international forums will also help improve Pakistan’s perception of the business environment.

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