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July 16, 2020

'OICCI paid Rs1.2trln in taxes in 2019, invested $3bln

Business

July 16, 2020

KARACHI: Foreign investors contributed Rs1.2 trillion or one-third of Pakistan’s total tax revenue collection in 2019, while investing $3 billion in energy, telecom and chemicals sectors during the last year, according to the consolidated financials announced on Wednesday.

The Overseas Investors Chamber of Commerce and Industry (OICCI), representing 200 foreign investors in Pakistan, said investors contributed significantly towards the GDP of the country and maintained the OICCI position as the largest chamber of commerce with new investments of more than $3 billion.

“We are very proud that in the past 12 months, OICCI members contributed over Rs1.2 trillion, or five billion rupees each working day, towards the tax revenue of Pakistan, which is approximately one-third of the total tax collection in the country,” Haroon Rashid, president of OICCI said in a statement.

Last year, two OICCI members paid taxes in excess of Rs100 billion each. The five sectors contributing over 80 percent of the tax revenue from OICCI members were energy, tobacco, fast-moving consumer goods (FMCG), food, telecommunications and banking sectors. OICCI members have an asset base of $120 billion.

“OICCI members believe in Pakistan and have always been leading economic contributors to the country, however we need to take note of emerging challenges that are affecting the ability of OICCI members to keep on attracting additional investment, for example, currency devaluation,” said Rashid. “There is also growing concern among our members on the uncertain regulatory and operating environment which, if not addressed, could threaten the attractiveness of Pakistan as a destination for FDI (foreign direct investment).”

OICCI members have in the past eight years invested $16 billion, largely in the energy, telecom, chemicals, FMCG, and banking sectors. Besides the monetary contribution, OICCI members also play a leading role in the transfer of technology, digital transformation, introducing latest inventions and sharing of best practices in the field of manufacturing operation, supply chain and marketing of internationally renowned brands. Moreover, OICCI members, as a group, are the largest contributor towards the social sectors. In the last one year OICCI members contributed Rs5.5 billion to social initiatives, benefiting 58 million people throughout the country.

OICCI hoped that authorities would proactively and in a structured manner engage with OICCI members in the policy formulation and implementation process for better managing the economic challenges to the country.