Pakistan’s Overseas Investors’ Chamber Reveals Economic Contribution of $22.6 Billion

On Tuesday, the Overseas Investors Chamber of Commerce and Industry (OICCI) made an announcement. This body represents about 200 foreign investors who have invested in Pakistan.

According to the OICCI, its members have made a contribution of $22.6 billion to Pakistan’s national economy in the last decade.

This highlights their commitment to the country and their confidence in its future growth.

Foreign Investment

Due to the prolonged and tough financial challenges facing the country, the Pakistani government has been making significant efforts to attract foreign investment.

The goal is to strengthen the economy of Pakistan and foreign investment is needed for this purpose. The government has been trying to attract investment from Central Asia, China and the Middle East.

To stabilize its economic situation, Pakistan also reached a staff-level agreement with the International Monetary Fund (IMF) in June, which is worth $7 billion.

In its statement, the OICCI said that between 2013 and 2023, the net foreign direct investment made in Pakistan was about $19.8 billion.

It said that in the same duration, the OICCI had made a contribution of $22.6 billion, which highlighted a major commitment to the economic development of Pakistan.

The OICCI

The OICCI further said that this investment also showcased the confidence that foreign investors have in the long-term potential of the country.

The statement revealed that in 2023, the assets reported by 139 OICCI member companies stood at Rs29.6 trillion or $106.36 billion.

In the same year, their government levies stood at Rs2.4 trillion, or $8.62 billion and capital expenditure was about Rs482 billion, or $1.73 billion.

Meanwhile, gross revenue stood at Rs10.4 trillion, or $37.37 billion. It said that they had achieved this despite the overall economic and political challenges the country had faced.

Rehan Sheikh, the President of the OICCI, also issued a statement.

He said that members of the OICCI were providing Pakistan with a strong foundation for future growth and development, as it navigates economic challenges.

The statement also revealed that 51 of the total members of the representative body are listed companies. These firms have seen their financial performance improve.

The Numbers

The profit before tax saw its compound annual growth rate (CAGR) rise to 30.2% between 2019 and 2023, from 18.9% between 2018 and 2022.

The cumulative profit before tax that these companies reported in 2023 stood at Rs1,130 billion, or $4.06 billion. As far as the turnover is concerned, it wasRs6,747 billion, or $24.24 billion.

M Abdul Aleem, the secretary general of the OICCI, said that foreign investment has played a key role in supporting Pakistan’s economy and the OICCI members have made significant contributions.

He also said that the contributions of the OICCI members are not just monetary. Their role is also evident in the digital transformation and transfer of technology.

They have helped introduce the latest inventions and have shared best practices in supply chain, manufacturing and marketing of internationally-known brands.

The OICCI members have had a positive impact on 40 million individuals in Pakistan. This is because of their Corporate Social Responsibility (CSR) activities.

They have invested Rs13 billion, or $46.71 million in the communities in Pakistan between 2022 and 2023.