Thursday, April 18, 2024

In 2020, foreigners will invest $2.4 billion

The Overseas Investors Chamber of Commerce and Industry (OICCI), which represents over 200 foreign investors from 35 countries in Pakistan, has released the consolidated financial contribution from its members for the year 2020, based on feedback from 170 members, 50 of which are Fortune 500 subsidiaries.

“Foreign investors are contributing in all key industrial areas, where they are investing in goods as well as services,” said Dr. Abid Qaiyum Suleri, a member of the Prime Minister’s Economic Advisory Council, in an interview with The Express Tribune.

Agrochemicals, fertilisers, pesticides, automobiles, banking, cement, chemicals, paints, engineering and industrial products, finance, insurance, IT and communication, shipping and airlines, security services, telecommunications, oil, gas, and energy, among other industries, will all see foreign investment. They are investing in basic necessities such as food, consumer goods, and pharmaceuticals.

Total investment over the last seven years was $13 billion, so it’s no surprise that they’re one of the biggest taxpayers, according to Suleri. “It demonstrates foreign investors’ faith in Pakistan.”

Despite a difficult and uncertain business environment due to Covid-19, OICCI members contributed over Rs1.4 trillion, or approximately Rs5 billion per working day, to Pakistan’s tax revenue in 2020, accounting for roughly one-third of the country’s total tax collection, according to OICCI President Irfan Siddiqui, who highlighted key features of the OICCI 2020 Economic Contribution survey.

“The Rs1.4 trillion tax payment means the 200 companies earned at least Rs4 trillion, but the question is where did the rest of the profit go, was it repatriated?” he said. Ali recommended that the government consider the problem.Because Pakistan is not just a larger market, but also one that is growing slowly, the country should create a favourable environment in which businesses can be encouraged to reinvest rather than ship earnings home.

During $18 billion has been invested by OICCI members in the energy, telecom, chemicals, food, fast-moving consumer goods, and banking sectors over the last nine years.

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