Foreign investors have called on Pakistan to reduce business regulations, improve investor protection and make it easier for companies to operate as the country looks to turn recent economic stability into higher investment and exports.
The Overseas Investors Chamber of Commerce and Industry (OICCI) raised these concerns during a meeting with a visiting International Monetary Fund (IMF) delegation on Thursday.
The IMF team, including Advisor Iva Petrova and Resident Representative Mahir Binici, met OICCI leadership and representatives of multinational companies operating in Pakistan.
The chamber pointed to a decline in foreign direct investment despite improvements in Pakistan’s external position and credit profile. It said net FDI fell by around 32 percent to $1.7 billion in FY2026.
OICCI called for simpler regulations and compliance requirements, stronger safeguards for investors and better coordination between federal and provincial authorities.
The chamber also said Pakistani businesses need to lead by investing more in the country. It noted that international investors often look at the confidence shown by domestic companies when making investment decisions.
Rising oil prices linked to the Middle East conflict were another concern. OICCI called for immediate steps to reduce energy consumption and a longer-term strategy to improve energy security.
It urged the government to develop a coordinated plan covering electricity, gas and petroleum while addressing high energy costs, circular debt and the need for investment in the refining sector.
The chamber also stressed that Pakistan needs to increase foreign exchange earnings to support stronger economic growth. It called for higher productivity, more competitive export industries and stronger trade and investment links with international and regional markets.
OICCI also pushed for faster reforms of state-owned enterprises and privatization where there is no strong policy reason for continued government ownership.
It said the government should clearly separate its roles as policymaker, regulator and commercial operator to give private businesses more room to compete and invest.
On taxation, the chamber called for bringing currently under-taxed sectors such as agriculture, real estate, small and medium-sized businesses and retail into the tax net instead of repeatedly increasing taxes on already documented businesses.
