KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) believes that ongoing political stand-off in Islamabad and terrorist attack on Karachi airport negatively impacted the ongoing business activities and also chased away expected Foreign Direct Investment (FDI).
Among major setbacks noted by OICCI members in the survey included the postponement or cancellation of scheduled business meetings in the country with overseas shareholders and regional management.
With regard to immediate impact of recent events on the ongoing business operations and product distribution, 40 per cent of respondents expect decline in sales and profitability with resultant reduction in tax payment.
However, the most damaging fact disclosed by the OICCI survey states that around 62pc of respondents foresee serious damage to the 2014-15 fiscal targets of the government, with a small minority suggesting that this may also impact the recently launched Vision 2025 targets.
OICCI President Asad S Jafar, commenting on the survey findings, stated, “OICCI believes in Pakistan and that brief surveys, like this, are not exhaustive but are meant to reflect an immediate assessment of the foreign investors of the current event.”
He further said, “We expect that the uncertainty in business environment will soon be stabilised and that the authorities, both at the federal and provincial level, will continue to address the key issues affecting business and investment.”
The OICCI chief pointed towards some of serious issues confronting business and investment which include security, law and order, energy supply gap, serious concern on governance and policy implementations and need for a structured accountability on business and investment issues in line with Vision 2025.
