Members inject $22.6bn in Pakistan in 10 years: OICCI

KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) member companies have injected a substantial $22.6 billion into Pakistan’s economy over the past decade (2013-2023).

The OICCI, which represents the top 210 foreign investors in Pakistan, reported that Pakistan received a net foreign direct investment (FDI) of $19.8 billion during this period. In comparison, OICCI members’ contribution amounted to $22.6 billion, reflecting their substantial commitment to the country’s economic progress and their confidence in Pakistan’s long-term potential.

In 2023, 139 OICCI member companies reported assets totalling Rs29.6 trillion, capital expenditures of Rs482 billion, government levies amounting to Rs2.4 trillion, and gross revenues of Rs10.4 trillion.

Despite the economic challenges faced by the country, OICCI members have shown greater confidence than other foreign investors over the last decade, as evidenced by their investment figures and economic contributions.

OICCI President Rehan Shaikh noted the members’ ongoing confidence in Pakistan’s economy, stating, “As Pakistan addresses its economic challenges, the continued confidence and investment from OICCI members lay a strong foundation for future growth and development.”

Among OICCI members, 51 listed companies have shown exceptional growth in financial performance. From 2019 to 2023, the compound annual growth rate (CAGR) for profit before tax increased to 30.2 per cent, compared to the 18.9 per cent CAGR from 2018 to 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 different industries to Pakistan’s economy, with the oil, gas and energy sector generating Rs4,857 billion and the banking, insurance, finance & leasing sector contributing Rs1,555 billion.

Secretary-General of the OICCI M Abdul Aleem commented on the survey findings, saying, “The significant contributions of OICCI members highlight the crucial role of foreign investment in strengthening Pakistan’s economy.” He added, “The diverse sectoral contributions show broad-based economic engagement, with key sectors like oil and gas, banking, and consumer products leading the charge.”

In addition to financial investments, OICCI members play a vital role in technology transfer, digital transformation, and introducing the latest innovations. They also share best practices in manufacturing, supply chain management, and marketing internationally renowned brands.

Through corporate social responsibility (CSR) activities, OICCI members invested Rs13 billion in 2022-2023, positively impacting 40 million individuals across the country.