KARACHI: The foreign investors expect continued growth of their business in Pakistan, latest perception survey of Overseas Investors Chamber of Commerce and Industry (OICCI) said Wednesday.
According to a statement, the managing committee of the OICCI met Prime Minister Nawaz Sharif to discuss the results of the Perception and Investment Survey 2015 on Wednesday. Finance Minister Ishaq Dar, Commerce Minister Khurram Dastgir Khan and Board of Investment Chairman Miftah Ismail were also present during the meeting.
OICCI President Atif Bajwa informed the PM that “the overall results of the OICCI survey were very encouraging and reflect improved and positive sentiment of the members of the OICCI; the leading foreign investors operating in the country”. This can be seen from the fact that 82 percent have stated they foresee continuing growth in their business and that they are generally committed to making further investment in Pakistan, he said.
Bajwa further said the respondents have also highlighted their concern with some aspects of doing business in Pakistan and have indicated that more support from certain government ministries and regulatory bodies is required.
According to the survey, the country’s economy is improving continuously. This is a welcome sign for the youth entering the job market with more than half of the respondents indicating they will add to their employment base. Nearly 60 percent of the respondents indicated plans to make new investments, out of which more than seven out of ten respondents plan to invest more or similar amounts over the next one to five years, as compared to the investments they made in the previous corresponding period.
The planned investment in business and human capital is expected to boost revenue and profitability, as 84 percent of the respondents are expecting increased sales and 79 percent expect their profits to rise.
Total amount of investments is estimated to be approximately $3 billion, over the next few years. OICCI members continue to have confidence in the country and hope the business climate will improve, with nearly eighty percent of the members stating they will recommend more foreign direct investment into Pakistan.
When comparing Pakistan business climate with ten regional countries, more than half the respondents gave a higher rating to Pakistan, as compared to Sri Lanka, Bangladesh, Philippines and Vietnam. A significant number of foreign investors have given good ratings for certain aspects of doing business like access to local finance, safety of foreign investment, repatriation of profit, and relatively favourable ratings for an independent legal system, and protecting minority interest’, which reflect the liberal and investor-friendly policies appreciated by foreign investors.
However, over 50 percent of the respondents of the survey have, once again identified security, law and order situation and energy shortage as the two biggest challenges they face, followed by an increasing tax burden, policy implementation and lack of inter-governmental coordination. PM Sharif was pleased to note the very positive sentiments of the OICCI members in the survey and assured them of the government’s wholehearted support in removing all the impediments to make Pakistan an investment destination of choice for foreign investors.