Overseas Investors Want More ‘Freedom’ in Pakistan

The Overseas Investors Chamber of Commerce and Industry (OICCI) is urging Pakistan to leverage recent macroeconomic stabilization improvements to spur private investment, exports, energy security and structural reforms. A recent meeting between the OICCI and an International Monetary Fund (IMF) delegation highlighted a concerning decline in foreign direct investment (FDI) despite the nation's improved external position and sovereign credit rating. The FDI figure fell by approximately 32 percent to $1.7 billion in the fiscal year 2026.

In response, the OICCI is advocating for reduced regulatory and compliance requirements, greater investor protection, and clearer coordination between federal and provincial authorities. The chamber also emphasizes the importance of domestic industries taking the lead by reinvesting in the country, suggesting that foreign investors observe the confidence shown by local businesses.

With the recent surge in oil prices due to conflicts in the Middle East, the OICCI is calling for immediate energy conservation measures and a medium-term plan to enhance energy self-sufficiency. They are also seeking a comprehensive energy security strategy encompassing power, gas, and petroleum sectors, citing high regional energy costs and circular debt, as well as the need for investment in refining and opportunities for regional energy cooperation.

Concerning Pakistan's external sector, the OICCI asserts that the nation cannot maintain higher growth rates without enhancing its capacity to generate foreign exchange earnings. The chamber is promoting greater competitiveness and productivity, as well as stronger export-oriented sectors, deeper trade and investment ties with key markets, and increased regional trade where commercially feasible.

Moreover, the OICCI urges for accelerated state-owned enterprise reform and credible privatization efforts, arguing that continued state ownership lacks a compelling policy rationale. They further advocate for the separation of the state's roles as policymaker, regulator, facilitator, and commercial operator in order to create more space for private sector investment and competition.

Lastly, the OICCI suggests broadening taxation into under-taxed segments, including agriculture, real estate, small and medium enterprises (SMEs), and retail, in lieu of repeatedly raising taxes on documented businesses.