FLASHNEWS:

OICCI Members Invest $23 Billion in Pakistan, Surpassing Decade-Long FDI

KARACHI: Leading foreign investors continue to demonstrate strong confidence in Pakistan's economic potential, with OICCI member companies alone investing over USD 23 billion in the country over the past decade, surpassing Pakistan's cumulative net foreign direct investment (FDI) inflows of USD 21 billion during the same period. The findings, released in OICCI's Members' Contribution to the Economy 2025 report on Monday, reflect the sustained commitment of OICCI members to expanding their operations, reinvesting earnings, and supporting Pakistan's long-term economic development.

According to the Overseas Investors Chamber of Commerce and Industry, the report highlights the significant contribution of OICCI member companies to Pakistan's economy in FY2025. Collectively, they generated PKR 13.1 trillion in gross revenue, maintained PKR 42 trillion in total assets, invested PKR 615 billion in capital expenditure, and contributed PKR 3.2 trillion in government levies, underscoring their role as some of Pakistan's largest investors, taxpayers, and drivers of economic activity.

The report also emphasizes the continued resilience of OICCI member companies listed on the Pakistan Stock Exchange (PSX). While the compound annual growth rate (CAGR) in Profit Before Tax (PBT) moderated to 26 percent in PKR terms during 2021-2025, compared to 35 percent in the previous reporting period, this was largely influenced by exchange rate movements and a higher base effect. In USD terms, PBT grew at a CAGR of 11 percent, while turnover recorded a CAGR of 21 percent in PKR terms and 6 percent in USD terms. Covering 51 listed OICCI member companies, the analysis reflects the sustained profitability and operational resilience of foreign-invested businesses despite a challenging macroeconomic environment.

The report illustrates the diverse sectoral composition of OICCI members' economic contribution. Within the OICCI membership, the Oil, Gas and Energy sector accounted for 36 percent of total government levies paid. The Banking, Insurance, Finance and Leasing sector represented 75.6 percent of total assets and 25 percent of total turnover, while the Telecommunications sector contributed 33 percent of the total capital expenditure (CAPEX). Companies operating in Food & Consumer Products, Chemicals, Pharmaceuticals & Healthcare, Automobile, Engineering, Shipping & Airlines, and other sectors also made substantial contributions, highlighting the broad-based economic footprint of OICCI member companies across Pakistan.

Commenting on the report, M. Abdul Aleem, Secretary General of OICCI, acknowledged the findings as a testament to the confidence that OICCI members have in Pakistan's long-term economic potential. He noted that the cumulative investment of over USD 23 billion during the past decade is a strong vote of confidence in Pakistan's future. Aleem emphasized that with greater policy consistency, regulatory predictability, and an enabling business environment, foreign investors could make an even larger contribution to economic growth, exports, innovation, and employment.

SG OICCI M. Abdul Aleem further added that the report demonstrates the substantial contribution of OICCI members beyond investment alone, with significant payments in taxes and levies, sustained capital expenditure, and business growth that continue to support Pakistan's fiscal position, industrial development, and economic resilience.

The continued reinvestment by OICCI member companies is particularly significant given persistent investor concerns over an unpredictable tax and policy framework, rising business costs, inconsistent implementation, and the need for structural reforms, improved security, and greater transparency. Their sustained commitment highlights Pakistan's long-term economic potential and the opportunities that can be unlocked through a stable and predictable investment environment.