OICCI Urges Pakistan to Turn Economic Stability into Investment

The Overseas Investors Chamber of Commerce and Industry (OICCI) has urged the government to turn recent macroeconomic stability into higher investment, exports and job creation.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb visited OICCI in Karachi on Thursday. He met senior chamber leaders and representatives of foreign-investing companies to discuss the next phase of Pakistan’s economic reform agenda.

OICCI acknowledged the improvement in macroeconomic conditions but said investment had yet to respond at the same pace. The chamber cited a roughly 34 percent decline in net foreign direct investment to $1.7 billion in FY26.

“Stabilisation was the first step, not the destination,” Aurangzeb said. He added that the government now wants to convert stability into investment, exports and employment.

Tax Refunds Remain a Key Investor Concern

OICCI members highlighted approximately Rs103 billion in pending income and sales tax refunds.

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They called for a time-bound mechanism to either pay verified claims or formally resolve them. The chamber also sought changes to withholding and sector-specific taxes.

Members proposed medium-term fiscal and tax frameworks based on consultation with industry. They also called for a gradual reduction in government borrowing from commercial banks to increase credit availability for businesses.

OICCI President Umar Ahsan Khan said investors need predictable policies to support reinvestment and new foreign direct investment.

“Pakistan has done the hard part of stabilising its economy,” Khan said. He added that clearing tax refunds and providing predictable tax policies could help demonstrate the benefits of economic stability.

Chamber Calls for Structural Reforms

The chamber also raised broader reform priorities. These included state-owned enterprise reforms, privatisation and measures to address power-sector circular debt.

OICCI members also called for wider taxation of agriculture, real estate, retail trade and small and medium-sized enterprises.

OICCI Secretary General M. Abdul Aleem said investors were seeking greater policy certainty rather than special treatment.

“Stability gave us a foundation,” Aleem said, adding that structural reforms and sustained consultation would influence future investment decisions.

OICCI has previously identified delayed tax refunds, high operating costs and policy uncertainty among issues affecting foreign investors.

Focus on Trade and Foreign Investment

The chamber also highlighted opportunities to strengthen Pakistan’s economic links with the United States, Gulf countries and China.

OICCI said stronger trade and investment ties with these markets could help expand exports and attract foreign capital.

The Finance Ministry has similarly identified a shift from stabilisation toward sustainable growth, investment and exports as a key economic priority.

Former OICCI President Yousaf Hussain also attended the meeting. Aurangzeb presented him with a souvenir on the occasion.

OICCI describes itself as a national reference point for foreign investors in Pakistan. Its current profile lists 211 members from 31 countries and says members have invested more than $21 billion in Pakistan since 2012.