The Overseas Investors Chamber of Commerce and Industry (OICCI) hosted a specialized session for 42 officers from the Inland Revenue Service as part of the Federal Board of Revenue (FBR) 51st Specialized Training Program. The session, led by OICCI CE/Secretary-General M Abdul Aleem, aimed to provide an in-depth understanding of foreign direct investment (FDI) in Pakistan, the imperative for tax reforms and the improvement of the country’s business climate.

𝗞𝗲𝘆 𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀:

𝗢𝗜𝗖𝗖𝗜’𝘀 𝗟𝗲𝗴𝗮𝗰𝘆 𝗮𝗻𝗱 𝗜𝗺𝗽𝗮𝗰𝘁: Established in 1860, OICCI represents over 200 multinational companies from 30+ countries across 14 sectors. In the past decade, members have invested $23 billion, contributed $40 billion in revenue, and paid $9.2 billion in taxes. CSR initiatives have directly benefited 40 million people.

𝗙𝗗𝗜 𝗧𝗿𝗲𝗻𝗱𝘀 𝗮𝗻𝗱 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲𝘀: Discussions covered FDI categories — market-seeking, resource-seeking, and strategic asset-seeking investments — with an emphasis on addressing barriers such as inflation, currency volatility, and security concerns, especially in resource-rich regions like Balochistan.

𝗧𝗮𝘅 𝗥𝗲𝗳𝗼𝗿𝗺 𝗣𝗿𝗼𝗽𝗼𝘀𝗮𝗹𝘀: OICCI advocated for broadening the tax base to include agriculture and real estate, simplifying the withholding tax regime, and harmonizing federal and provincial tax policies. Leveraging AI and digitization to streamline compliance was also emphasized.

𝗕𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗖𝗹𝗶𝗺𝗮𝘁𝗲: OICCI’s Business Confidence Index showed modest improvement but highlighted persistent concerns, such as high energy costs, economic uncertainty, and policy inconsistency. Growing dissatisfaction is primarily driven by economic challenges, tax fairness issues, frequent audits, and governance inefficiencies.

𝗢𝗜𝗖𝗖𝗜’𝘀 𝗕𝗿𝗼𝗮𝗱𝗲𝗿 𝗜𝗻𝗶𝘁𝗶𝗮𝘁𝗶𝘃𝗲𝘀: OICCI’s focus extends to improving gender diversity, promoting intellectual property rights, driving digital transformation, sustainability and climate advocacy. These initiatives are essential for encouraging business growth and innovation while ensuring Pakistan remains competitive and aligned with global best practices and standards.

The interactive Q&A session facilitated productive dialogue, with participants acknowledging OICCI’s vital role in fostering economic progress. Kashif Shafi, Executive Director at OICCI, and Aman Ghanchi, Executive Director Legal & Company Secretary at Unilever Pakistan were also present to share their expertise and engage with attendees.

FBR Commissioner Noman Malik praised OICCI’s contributions, highlighting its role in improving investment conditions and supporting key policy reforms. OICCI is committed to driving initiatives that promote economic growth and enhance Pakistan’s business environment.