ISLAMABAD: Advisor to the prime minister on Finance, Dr Abdul Hafeez Sheikh, had an interactive session with foreign investors at Overseas Investors Chamber of Commerce and Industry (OICCI). Talking to OICCI members, the advisor gave a comprehensive overview of the challenges faced by the economy in the past two years and GOP strategy to manage the economy . Dr Hafeez Shaikh said growth trend in some industries like cement, automobile and fertilizer whereas rapid growth was noticed at PSX which was encouraging as it gives confidence to the investors.
President OICCI, Haroon Rashid, welcomed Dr Abdul Hafeez Sheikh and briefed him about the critical role of OICCI and its members in the economy of Pakistan and shared that delays in tax refunds and some other issues calling it a hurdle in bringing Foreign Direct Investment (FDI) in the country
The participants representing the major foreign investors appreciated the GOP’s effort in successfully overcoming the COVID-19 challenge to the economy and taking appropriate measures for the health and safety of the people of Pakistan. OICCI members complimented the Advisor on Finance for the constructive approach adopted during the 2020-21 budgetary process. They appreciated tariff rationalization of over 1600 items besides rationalising withholding taxes at import stage. They also appreciated the recent launch of Roshan Digital Account for overseas Pakistanis calling it a step in the right direction.
However, the foreign investors expressed concern on the continuation of the high rate of turnover tax especially for high turnover but low margin sectors like petroleum and chemical businesses. The participants showed concern on the recent incident on the Lahore-Sialkot ring road which has damaged the morale of the stakeholders, who were otherwise satisfied with the highly improved security environment in Pakistan.
OICCI President, Haroon Rasheed, recommended that the government should take a collective view of the measures to encourage foreign investment in Pakistan, including appointing a focal ministry for streamlining operating issues of foreign investors. OICCI strongly recommended that the GOP should ensure that incentives once given to foreign investors should not be withdrawn.
