LAHORE – Finance Minister Dr Abdul Hafeez Shaikh recently visited the Overseas Investors Chamber of Commerce and Industry (OICCI) to discuss the issues faced by foreign investors in Pakistan. The meeting was attended by the OICCI members representing all major sectors including pharmaceutical industry, financial institutions and the energy sector.
OICCI President Ameena Saiyid presented an overview of OICCI and shared the results of the OICCI Business Confidence Survey, an ongoing quarterly survey that gauges the confidence level of the business community. The results highlighted that confidence level of business community had declined as the year 2010 progressed. She pointed out that inflation, the cost of doing business and the security situation remained key factors in the poor business environment in the country.
Addressing the OICCI members, Dr Shaikh lauded the significant contributions of OICCI members to the economy. He agreed that representatives of the chamber should be part of all policy making bodies and announced that Ameena Saiyid was a member of the Economic Advisory Council and invited the OICCI to submit advice on economic matters.
Noting the concerns put forward by OICCI members relating to pending Sales Tax and Income Tax refund claims, Dr Shaikh announced the formation of a committee comprising select members of OICCI and Chairman FBR to resolve all such issues as soon as possible. The minister informed the members that the FBR had improved the refund system and that refunds amounting to Rs 12 billion had already been paid in the past three months to taxpayers around the country.
While acknowledging the tough economic times that the country was going through, Dr Shaikh commented that the rising fuel prices had further strained an already afflicted economy which was struggling in the aftermath of the devastating floods that struck Pakistan in July 2010. Dr Shaikh also spoke of the difficult issues he had inherited.
Amongst other issues, members of OICCI highlighted the circular debt issue for the power and energy sector, the pricing, intellectual property theft, and data protection issues of the pharmaceutical industry as some of the major hurdles in attracting foreign investment.
Speaking at the occasion, Saiyid commented, “the OICCI, which is the premier body of top multinationals in the country, is keen on providing all possible assistance to make the country an investment-friendly destination.” She further added that OICCI members, who have been operating successfully in Pakistan for decades, share their experience and success stories with the global business community to encourage foreign investors to invest in Pakistan.
OICCI offered to act as a catalyst for promoting investment by improving the perception of Pakistan through active participation in foreign investor forums. It also volunteered to identify major bottlenecks towards investment and helping the Government of Pakistan in shaping a new framework for growth and investment. The OICCI represents 185 foreign companies doing business in Pakistan, many of whom began operations in Pakistan over 60 years ago.
OICCI is the oldest trade body in both the country and region, having been established 150 years ago. OICCI members collectively contribute over 29 percent of Pakistan’s total GNP, 22 percent of total tax receipts and provide direct employment to approximately 150,000. OICCI also plays an active role in terms of representation and advocacy to the government, various regulatory bodies, and policy makers.
