The Managing Committee (MC) of OICCI, the premier body of 195 leading foreign investors in Pakistan, expressed dismay at the unexpectedly low figure for full year 2014-15 FDI, which was reported at US$ 0.7 billion, down by 58 percent compared to the already low $ 1.7 billion in the previous year. Against this, the OICCI members during the same period invested $ 1.5 billion from their retained earnings in Pakistan.
Commenting on the low FDI inflow, OICCI President Atif Bajwa said it highlighted the fact that “potential overseas investors have not been able to shake off their negative perception of Pakistan’s investment climate despite recent stabilization of the economic and security situation and improved business confidence within the country”. He said: “It seems before committing medium to long term investments, foreign investors would like to see further evidence of improvements in policy implementation, transparency in governance, and sustained stability in the security environment. With positive developments in these areas, overseas investors take advantage of the otherwise business-friendly policies and good commercial prospects in Pakistan”.
Atif Bajwa also made a direct pitch to foreign investors who are not operating in Pakistan by highlighting that “during last five years, compound annual growth in turnover and profits of the foreign owned companies listed on KSE has been in the high double digits. The OICCI members have invested nearly US $ 1.5 billion last year from their retained earnings to take advantage of the business potential in Pakistan and to ensure their market share is sustained”.
The OICCI expressed its satisfaction on the government’s recent initiative to form a high-powered committee to suggest measures to improve the country’s ranking on the World Bank’s annual Ease of Doing Business (EODB) survey, where the OICCI is also represented. The OICCI has been regularly recommending that impediments to potential investments identified in the annual EODB surveys, the OICCI sponsored six-monthly Business Confidence Index and OICCI members Perception and Investment survey, need to be taken seriously and professionally and issues should be addressed on a timely basis by the relevant federal and provincial authorities. OICCI offered its full support and assistance in this respect.