OICCI members inject $22.6bn in Pakistan over 10 years

August 06, 2024 (MLN): The Overseas Investors Chamber of Commerce and Industry (OICCI), the representative body for the top 210 foreign investors in Pakistan, injected a significant $22.6 billion in the country over the past 10 years, said a press release issued on Tuesday.

The OICCI in its 2023 annual economic contribution survey said that this compares with Pakistan's net Foreign Direct Investment (FDI) of $19.8bn, showcasing a significant commitment of OICCI members to the country’s economic development.

This robust investment underscores the confidence foreign investors have in Pakistan's long-term potential, it said.

In 2023, the 139 OICCI member companies reported assets amounting to Rs29.6 trillion, capital expenditure of Rs482bn, government levies of Rs2.4tr, and gross revenue of Rs10.4tr.

Despite the challenges faced by the country, OICCI members have shown more confidence than other foreign investors over the last decade, as reflected in the investment figures and economic contributions, ti added.

Highlighting members’ confidence in the Pakistan economy, OICCI President Rehan Shaikh said, “as Pakistan navigates its economic challenges, the sustained confidence and investment by OICCI members provide a solid foundation for future growth and development.”

Among the OICCI members, 51 are listed companies that have demonstrated remarkable growth in their financial performance.

From 2019 to 2023, the Compound Annual Growth Rate (CAGR) of profit before tax surged to 30.2% compared to a CAGR of 18.9% between 2018 and 2022.

In 2023, these companies reported a cumulative profit before tax of Rs1.13tr and a turnover of Rs6.747tr.

The sector-wise turnover for 2023 highlights the diverse contributions of various industries to Pakistan’s economy with the Oil, Gas & Energy recording Rs4.857tr and Banking, Insurance, Finance & Leasing Rs1.555tr.

Commenting on the survey findings, OICCI CE/Secretary General M Abdul Aleem said, “The significant contributions of OICCI members underscore the pivotal role of foreign investment in bolstering Pakistan's economy.” He added, “The diverse sectoral contributions reflect a broad-based economic engagement, with key sectors such as oil and gas, banking, and consumer products leading the way.”

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.

By investing Rs13tr in 2022-2023 in Pakistan’s communities through its Corporate Social Responsibility (CSR) activities, the members have positively impacted 40 million individuals across the country, it said.

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