October 18, 2018: Overseas Investors Chamber of Commerce and Industry (OICCI) has said that despite the lackluster economic activity during the past one year, the OICCI members have re-invested over US$ 2.7 Billion in Pakistan during this period, which is highest ever on a comparative basis over the last few years.
The investment by OICCI members was almost at par with the total FDI of $2.8 in the country during the same period. In the past six years, OICCI members have re-invested US$ 10.4 Billion, whereas FDI inflow in the country was only US$ 11 Billion FDI, which reflects the extreme confidence of the leading foreign investors, who are already operating here, on opportunities in Pakistan.”
Giving a balanced assessment of the business environment, the OICCI team presented key highlights of its bi-annual Business Confidence survey – wave 16, released in May this year, which indicated a downward trend with an overall Business Confidence score (BCS) of 14%. However, the BCS of OICCI members only, was significantly more bullish at 38%, reinforcing a clear message about the positive sentiments of foreign investors.
The OICCI 2017 Perception Survey of foreign investors also reflected positive sentiments, as over 70% members had indicated plans to make additional investments in the country and strongly recommend Pakistan to potential new foreign investors.
The OICCI President however cautioned that “this support for economic growth and investment from OICCI members should not be taken for granted, as sentiments are dependent upon the expectations that the government will soon unveil growth-oriented economic and trade strategies.
Taking into account the demographics of the country, Pakistan has the potential to absorb FDI of at least 3 percent of the GDP, as compared to less than one percent of GDP received in the past six years.
Speaking of the investment potential in Pakistan, Secretary General OICCI Mr. Abdul Aleem informed that “Pakistan with over 200 million population, is a highly attractive market opportunity for investors. Many international agencies have already assessed Pakistan’s retail sector as one of the fastest-growing markets in the world and worth approximately US$ 150 billion”.