By Syed Wahaj Ahmed
Economic analysts said the Overseas Investors Chamber of Commerce and Industry (OICCI)’s 2023 annual economic contribution survey is encouraging for the foreigners’ sentiments about Pakistan.
The Overseas Investors Chamber of Commerce and Industry (OICCI) revealed substantial contributions by its members to Pakistan’s economy in its 2023 annual economic contribution survey.
Over the past 10 years, from 2013 to 2023, Pakistan received a net Foreign Direct Investment (FDI) of $19.8 billion. During the same period, OICCI members contributed $22.6 billion, showcasing a significant commitment to the country’s economic development. This robust investment underscores the confidence foreign investors have in Pakistan’s long-term potential.
In 2023, the 139 OICCI member companies reported assets amounting to Rs29.6 trillion, capital expenditure of Rs482 billion, government levies of Rs2.4 trillion, and gross revenue of Rs10.4 trillion. Despite the challenges faced by the country, OICCI members have shown more confidence than other foreign investors over the last decade.
Highlighting members’ confidence in the Pakistan economy, OICCI President Rehan Shaikh said, “as Pakistan navigates its economic challenges, the sustained confidence and investment by OICCI members provide a solid foundation for future growth and development.”
From 2019 to 2023, the Compound Annual Growth Rate (CAGR) of profit before tax surged to 30.2% compared to a CAGR of 18.9% between 2018 and 2022. In 2023, these companies reported a cumulative profit before tax of Rs1,130 billion and a turnover of Rs6,747 billion.
The sector-wise turnover for 2023 highlights the diverse contributions of various industries to Pakistan’s economy with the oil, gas and energy recording Rs4,857 billion and banking, insurance, finance and leasing Rs1,555 billion.
OICCI Secretary General M Abdul Aleem said, “The significant contributions of OICCI members underscore the pivotal role of foreign investment in bolstering Pakistan’s economy”.
Commenting on the OICCI survey 2023, Economic Analyst and former president of the Karachi Chamber of Commerce and Industry (KCCI) Majyd Aziz said the survey is an encouraging reflection on the foreigners’ perception of the country. Despite pessimistic reports that there is an exodus of foreign firms from the country, it is a positive note that during the preceding year, the outlay of capital expenditures by 139 foreign investors was nearly half a trillion rupees. Another shining highlight has been that the CAGR of profit before tax of foreign companies exceeded 30% in the last four years, especially when political instability, pressure on the economy, currency issues, difficulties in obtaining foreign exchange for imports of raw material, capital goods, and profit repatriation, and high rates of infrastructure and others, negatively impacted the economy. It augurs well that OICCI members are playing a prominent role in the transfer of technology, digital transformation, and sharing of best practices in the field of manufacturing, supply chain and marketing of internationally renowned brands. The positive results and contributions of foreign investors in the current year would surely send a very upbeat message and could be the harbinger of renewed large scale foreign direct investment in Pakistan.
