IMF team visits OICCI: Foreign investors call for protection, tax broadening
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI), representing foreign investors operating in Pakistan, has called for broadening taxation into under-taxed segments, lower regulatory and compliance burdens, stronger investor protection and clearer coordination among federal and provincial authorities for a sustainable growth. During a meeting with a visiting International…
During a meeting with an International Monetary Fund (IMF) delegation, the Overseas Investors Chamber of Commerce and Industry (OICCI) emphasized the need for Pakistan to broaden taxation into under-taxed sectors, reduce regulatory burdens, improve investor protection, and enhance coordination between federal and provincial authorities for sustainable growth.
The delegation, led by Iva Petrova, Advisor of the Middle East and Central Asia Department, and Mahir Binici, Resident Representative, discussed the decline in foreign direct investment (FDI) despite improvements in Pakistan's external position and credit profile, with FDI falling by 32% to USD 1.7 billion in FY26. OICCI representatives highlighted the need for lower compliance costs, stronger investor safeguards, and clearer coordination between national governments to create a favorable environment for private investment.
They also urged the country to utilize the benefits of macroeconomic stabilization to stimulate exports, energy security, and structural reforms. OICCI called for domestic businesses to lead by reinvesting in Pakistan, while foreign investors sought reassurance from local industry confidence. The chamber urged Pakistan to address rising energy costs, circular debt, and the need for investment in refining, as well as explore regional energy cooperation.
On the external sector, OICCI stressed the importance of expanding foreign exchange earnings through improved competitiveness and productivity, stronger export-oriented industries, and deeper trade ties with key markets. To promote structural reforms, the chamber advocated for faster privatization of state-owned enterprises (SOEs) where state ownership lacks a compelling policy rationale, and separation of the state's roles as policymaker, regulator, facilitator, and commercial operator to foster private-sector investment and competition.
OICCI urged Pakistan to broaden taxation into under-taxed sectors, including agriculture, real estate, SMEs, and retail, rather than repeatedly increasing the burden on documented businesses.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
