The Pak Banker

OICCI explains its contributi­ons to country’s economy

The Overseas Investors Chamber of Commerce and Industry (OICCI), the representa­tive body for the top 210 foreign investors in Pakistan, revealed substantia­l contributi­ons by its members to Pakistan’s economy in its 2023 annual economic contributi­on survey.

Over the past 10 years, from 2013 to 2023, Pakistan received a net FDI of $19.8 billion.

During the same period, OICCI members contribute­d $22.6 billion, showcasing a significan­t commitment to the country’s economic developmen­t. This robust investment underscore­s the confidence foreign investors have in Pakistan’s long-term potential.

In 2023, the 139 OICCI member companies reported assets amounting to Rs 29.6 trillion, capital expenditur­e of Rs 482 billion, government levies of Rs 2.4 trillion, and gross revenue of Rs 10.4 trillion. 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.

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 percent compared to a CAGR of 18.9 percent between 2018 and 2022. In 2023, these companies reported a cumulative profit before tax of Rs 1,130 billion and a turnover of Rs 6,747 billion.

The sector-wise turnover for 2023 highlights the diverse contributi­ons of various industries to Pakistan’s economy with the Oil, Gas & Energy recording Rs 4,857 billion and Banking, Insurance, Finance & Leasing Rs 1,555 billion.

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 said 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.