Latest news with #OverseasInvestorsChamberofCommerceandIndustry
Express Tribune
23-05-2025
- Business
- Express Tribune
Business confidence improves
Listen to article The Overseas Investors Chamber of Commerce and Industry (OICCI) has unveiled the results of its Business Confidence Index (BCI) Survey – Wave 27, conducted across Pakistan in March and April 2025. The results were announced following a meeting between OICCI's senior leadership and Federal Minister for Finance & Revenue Senator Muhammad Aurangzeb. According to a press statement issued on Thursday, overall business confidence improved significantly by 16 percentage pointsfrom negative 5% in the previous wave (October-November 2024) to positive 11%. The statement attributed the improvement to macroeconomic stability, declining inflation, and expectations of better business conditions in the next six months. Among sectors, the manufacturing sector led the recovery, improving from negative 3% to positive 15%, followed by the retail/wholesale sectors, which rose from negative 18% to positive 2%. The services sector increased from 2% to 10%. Finance Minister Muhammad Aurangzeb said, "The uptick in business confidence is a clear sign that our economic direction is on the right track. We are focused on creating a conducive environment for investment, supporting private sector growth, and ensuring long-term macroeconomic resilience. The improved sentiment among businesses is both encouraging and a validation of our collective efforts." Yousaf Hussain, President OICCI, said, "Over the past two years, overall business confidence has shown a notable improvement. This sharp recovery in the latest Wave 27 reflects the resilience of Pakistan's business sector and its readiness to seize emerging growth opportunities. To maintain this momentum, there must be greater policy consistency, transparency, and active engagement with key stakeholders including OICCI members." The BCI Wave 27 survey showed increased optimism for the next six months, with 45% of respondents expressing positive expectations. Contributing factors include economic growth, improved government policies, investment climate, and the security situation.
Business Recorder
13-05-2025
- Business
- Business Recorder
Telenor Pakistan wins OICCI Women Empowerment Award
ISLAMABAD: Telenor Pakistan has been honoured with the prestigious OICCI Women Empowerment Award in the category of Work-Life Balance and Integration at the 7th OICCI Women Empowerment Awards. Organised by the Overseas Investors Chamber of Commerce and Industry (OICCI), the awards celebrate corporate leadership in advancing gender equality and empowering women, in alignment with the United Nations Sustainable Development Goals (SDG 5). The OICCI Women Empowerment Awards have become a flagship event, spotlighting organizations that are driving real change through progressive policies, impactful programs, and a strong commitment to fostering women's leadership and inclusion in the workplace. Commenting on the achievement, Areej Khan, chief people officer at Telenor Pakistan, said: 'We are deeply honored to receive this recognition from OICCI. Our focus on work-life balance, flexible policies, and continuous support mechanisms enables our employees, to seamlessly integrate their personal and professional aspirations. This award reaffirms our dedication to cultivating a diverse and equitable workplace where everyone has the opportunity to lead, inspire, and thrive.' As a modern and inclusive workplace, Telenor Pakistan is advancing gender empowerment through initiatives that support women at every stage of their careers. Copyright Business Recorder, 2025
Business Recorder
30-04-2025
- Business
- Business Recorder
OICCI seeks key tax reforms to increase tax-to-GDP ratio
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has released its recommendations for the Federal Budget 2025-26, outlining a comprehensive tax reform roadmap aimed at broadening the tax base, improving compliance, facilitating investment, and enhancing FBR's revenue generation. OICCI emphasized that a more equitable contribution across all sectors, proportionate to their share of GDP, could increase the tax-to-GDP ratio to approximately 14 percent, which currently stands at less than 10 percent. Key among the recommendations is the reduction of the Corporate Tax Rate to 28 percent for FY 2025-26, with a structured plan to lower it by one percent annually, reaching 25 percent within five years. This progressive reduction will align Pakistan's corporate tax structure with other emerging economies and boost competitiveness. Unlocking country's true potential: OICCI proposes 'economic execution plan' To sustainably grow the tax base, OICCI stressed the urgent need for bringing traditionally under-taxed sectors — agriculture, real estate, and wholesale/retail trade — into the formal tax net. OICCI also recommends reducing the sales tax rate on goods to 17 percent immediately, followed by a gradual one percent annual reduction to bring it down to 15 percent, matching the regional average. Harmonization of sales tax rates between the federal and provincial governments is critical to simplifying compliance and encouraging business growth. The Chamber further calls for the gradual abolishment of the Super Tax within three years, to create a more predictable and business-friendly fiscal environment. Additionally, the OICCI highlighted the persistent challenge posed by the illegal cigarette trade, which results in tax losses exceeding Rs300 billion annually. Strict enforcement measures are necessary to plug this major revenue leakage. 'Pakistan must act decisively to modernize its tax system,' said OICCI President Yousaf Hussain. 'Our proposals are focused on creating a transparent, predictable, and equitable taxation framework that encourages economic growth, investment, and job creation.' In the energy sector, OICCI recommends that all major petroleum products be treated as taxable supplies at the appropriate sales tax rates, ensuring a fairer and broader tax contribution from the sector. OICCI also urged measures to facilitate the release of over Rs120 billion in pending tax refunds by the Federal Board of Revenue (FBR), emphasizing that consistent and transparent policy implementation is critical to building investor confidence and attracting greater foreign direct investment (FDI). One of the important OICCI's suggestions is to increase the taxable income threshold to Rs1.2 million annually per individual. However, to maintain and grow the number of taxpayers, mandatory tax filing should remain unchanged for all income earners earning in excess of Rs0.6 million. In conclusion, OICCI Secretary General M. Abdul Aleem added, 'With the right reforms and policy consistency, Pakistan can significantly expand its revenue base, restore business confidence, and position itself as a more attractive destination for investment.' The OICCI remains committed to supporting the government in developing policies that promote economic prosperity and sustainable growth. Copyright Business Recorder, 2025
Express Tribune
06-04-2025
- Business
- Express Tribune
Bridging the climate finance gap
Pakistan's vulnerability to climate change is undeniable. Despite contributing less than 1% of global greenhouse gas emissions, the country is among the most climate-vulnerable nations. Rising temperatures, unpredictable rainfall patterns, and devastating floods have caused extensive damage to infrastructure, disrupted agricultural productivity, and threatened millions of lives. This is not just an environmental challenge—it is a socio-economic crisis that requires an immediate and effective climate action roadmap. The urgency for coordinated efforts has never been greater. Pakistan has made commendable strides by participating in global climate frameworks, aligning with the Paris Agreement, and recently announcing its Green Taxonomy and Carbon Trade Market Policy Guidelines. While these initiatives offer a framework for sustainable development, their success depends on translating these commitments into tangible outcomes through collaboration between the public and private sectors. One of the most promising pathways lies in public-private partnerships (PPPs). With government resources stretched thin, PPPs can be a game-changer, providing access to climate funding, scaling up innovative solutions, and accelerating progress toward Pakistan's Nationally Determined Contributions (NDCs). Pakistan has committed to a 50% reduction in projected greenhouse gas emissions by 2030, with 60% renewable energy in the power sector and 30% of new vehicles sold being electric by 2030 as key targets. Achieving these ambitious goals requires private sector engagement through sector-specific emission reduction targets, green financing instruments, and tax incentives that align business operations with national climate objectives. Encouraging voluntary climate disclosure frameworks, such as the Securities and Exchange Commission of Pakistan's (SECP) ESG disclosure guidelines, can enhance corporate accountability, while mobilizing private capital through initiatives like the Overseas Investors Chamber of Commerce and Industry's (OICCI) climate-focused dialogues can facilitate investments in net-zero projects. Additionally, supporting climate-focused startups through programs like the Green Climate Fund's $15 million investment in Pakistan's venture capital sector can drive innovation, and large corporations can integrate sustainability into their corporate social responsibility (CSR) activities, such as reforestation, and environmental conservation projects. By effectively implementing these strategies, Pakistan can bridge the gap between policy commitments and real-world impact, unlocking the full potential of the private sector in driving sustainable, climate-resilient growth. Globally, 41% of NDCs rely on private sector participation, yet in Pakistan, private sector investment in climate initiatives remains at a mere 0.5% of GDP. This is a significant missed opportunity that must be addressed to unlock the full potential of the corporate sector in driving climate action. The private sector is key to building climate-resilient infrastructure, investing in renewables, and promoting nature-based solutions. Collaboration in these areas bridges the climate finance gap and unlocks economic opportunities. Integrating climate adaptation enhances disaster resilience through early warning systems and resilient urban planning. Investments in flood-resistant infrastructure, drought-resistant agriculture, and smart water management can significantly mitigate climate risks. Technology-driven early warning systems, such as real-time weather monitoring and AI-based disaster prediction models, can help mitigate the impact of extreme weather events. Furthermore, sustainable urban planning—including green building designs, climate-smart transportation, and improved drainage systems—is essential for protecting rapidly growing cities from climate-related hazards. To facilitate these investments, the government must create an enabling environment for PPPs by offering clear incentives, ensuring regulatory transparency, and fostering robust governance frameworks that attract long-term private sector participation in climate adaptation initiatives. At the 3rd Pakistan Climate Conference 2025, organized by the Overseas Investors Chamber of Commerce and Industry (OICCI), business leaders came together with policymakers and climate experts to address the critical need for corporate participation in climate action. The conference emphasized the corporate sector's role in building a more climate-resilient Pakistan through decarbonization, circular economy practices, and sustainable innovation. Industries are increasingly adopting resource efficiency strategies, such as energy-efficient manufacturing processes, water conservation technologies, and sustainable supply chain management, to minimize environmental impact. Industrial recycling initiatives, including waste segregation, material recovery, and repurposing industrial by-products, are gaining traction, helping reduce landfill waste and promote circularity in production cycles. Additionally, waste-to-energy projects, such as biogas plants, incineration-to-electricity facilities, and solar-powered desalination units, are being explored as viable solutions to generate clean energy from industrial and municipal waste. These efforts demonstrate a growing commitment from the private sector to actively support national climate goals and integrate sustainability into their business models, paving the way for a greener and more resilient economy. Expanding renewable energy is central to Pakistan's climate strategy, yet only 7% of its energy mix comes from renewables, with 41% reliant on fossil fuels. Scaling up solar, wind, and hydropower is crucial for cutting emissions, enhancing energy security, and creating green jobs. Private sector investment can accelerate this transition, unlocking significant economic benefits. A World Bank study estimates that renewable energy projects could generate over 327,000 jobs in Pakistan by 2030, supporting inclusive growth. Additionally, the World Bank has pledged $20 billion over the next decade to support clean energy, climate resilience, and private-sector development. The private sector's involvement in renewable energy not only aids in achieving national climate goals but also presents significant investment potential. By investing in renewables, businesses can drive sustainable growth while strengthening Pakistan's climate resilience. Similarly, climate-smart agriculture is no longer an option—it is essential. With 40% of Pakistan's workforce dependent on agriculture, erratic weather patterns and water scarcity pose existential threats. Drought-resistant crops, efficient irrigation systems, and methane reduction initiatives can help protect rural livelihoods and ensure food security. These innovations require investment, and the corporate sector can support their development and adoption. Securing adequate climate finance remains one of Pakistan's biggest challenges, with an estimated funding gap of $348 billion by 2030. The recently launched National Climate Finance Strategy (NCFS) provides a structured framework to mobilize both domestic and international resources, aligning with global initiatives such as the New Collective Quantified Goal (NCQG) on climate finance. To attract investments, Pakistan is expanding its financing tools, including the establishment of a carbon trading market under the Carbon Trade Policy, which enables monetization of carbon offsets while protecting natural ecosystems. Projects like the Delta Blue Carbon initiative, which restores mangroves while generating carbon credits, showcase the country's potential in leveraging nature-based solutions for climate financing. Additionally, the government is exploring green bonds, with ongoing negotiations for Panda bond issuance worth $200-250 million, backed by the Asian Infrastructure Investment Bank (AIIB) to support eco-friendly projects. Blended finance mechanisms, combining public and private investments, are also being explored to de-risk and encourage corporate participation in climate projects. Beyond clean energy and agriculture, building climate resilience also requires robust infrastructure that can withstand extreme weather events. Flood-resistant housing, climate-proof transportation systems, and early warning mechanisms are essential for disaster preparedness. Here too, public-private collaboration can make a substantial impact. Companies can offer innovative engineering solutions and real-time monitoring systems while working with communities to strengthen disaster resilience. Notable examples of successful carbon offset projects in Pakistan include the Billion Tree Tsunami, which restored 350,000 hectares of forests and degraded land in Khyber Pakhtunkhwa, surpassing its Bonn Challenge commitment. These initiatives demonstrate the potential for impactful climate action through coordinated efforts between government entities and private organizations. Now is the time for Pakistan to lead by example—advocating for equitable climate finance, ensuring fair trade policies, and fostering meaningful international partnerships. By working together, the public and private sectors can transform Pakistan's vulnerabilities into strengths, turning country into a model of climate resilience and sustainable development. The time to act is not tomorrow—it is today. Sakina Chakera is an analyst and research lead at the Overseas Investors Chamber of Commerce & Industry All facts and information are the sole responsibility of the author
