The Overseas Investors Chamber of Commerce and Industry (OICCI) has called on Pakistan to use the gains achieved through macroeconomic stabilization to accelerate private investment, expand exports, strengthen energy security and advance structural reforms. The Chamber made the recommendations during a meeting with a visiting International Monetary Fund (IMF) delegation, where representatives of multinational companies and senior OICCI leadership discussed key economic challenges and measures required to support sustainable growth and improve the investment environment.
The IMF delegation included Iva Petrova, Advisor at the Middle East and Central Asia Department, and Mahir Binici, Resident Representative in Pakistan. The delegation met senior representatives of OICCI and executives from member multinational companies at the Chamber on Thursday. During the discussions, OICCI highlighted the gap between improvements in Pakistan’s external position and sovereign credit profile and the continued weakness in foreign direct investment. The Chamber noted that net FDI declined by around 32% to $1.7 billion in FY26, and called for measures that could improve investor confidence and create more favorable conditions for both domestic and foreign businesses.
OICCI said Pakistan needs to reduce regulatory and compliance burdens while strengthening investor protection and improving coordination between federal and provincial authorities. According to the Chamber, clearer institutional coordination and a more predictable business environment are important for encouraging investment. It also emphasized the role of domestic industry in driving economic activity, arguing that local businesses need to demonstrate confidence by reinvesting in Pakistan. The Chamber noted that the investment decisions of foreign companies can also be influenced by the confidence shown by domestic businesses operating in the country.
Energy security was another major area discussed during the meeting. OICCI called for immediate energy conservation measures in response to higher oil prices linked to the Middle East conflict, while also advocating a medium-term strategy aimed at increasing energy self-sufficiency. The Chamber said Pakistan requires a coherent energy security framework covering electricity, gas and petroleum. It pointed to high regional energy costs and circular debt as continuing challenges and highlighted the need for greater investment in refining capacity as well as opportunities for regional energy cooperation.
The Chamber also stressed that Pakistan’s ability to sustain higher economic growth depends on increasing its capacity to generate foreign exchange through exports. OICCI called for stronger competitiveness and productivity across the economy and urged greater development of export-oriented sectors. It also emphasized the importance of deeper trade and investment relationships with key international markets and greater regional trade where such activity is commercially viable. Expanding the country’s export base was presented as an important component of strengthening the external sector and supporting longer-term economic growth.
On structural reforms, OICCI called for faster reform of state-owned enterprises (SOEs) and credible privatization in cases where there is no compelling policy reason for continued state ownership. The Chamber also urged the government to clearly separate the state’s roles as policymaker, regulator, facilitator and commercial operator. According to OICCI, clearer separation of these functions could create greater room for private-sector participation and competition while reducing potential overlaps between government responsibilities and commercial activities.
Tax reform was another area highlighted by the Chamber. OICCI called for a broader tax base that brings currently under-taxed segments into the formal tax framework, including agriculture, real estate, small and medium-sized enterprises and retail. The Chamber argued that tax policy should focus on expanding the number of contributing sectors rather than repeatedly increasing the burden on businesses that are already documented and operating within the formal economy.
The recommendations come as Pakistan continues efforts to consolidate macroeconomic stabilization while addressing longer-term constraints on investment, exports and economic productivity. OICCI’s discussions with the IMF delegation covered several interconnected areas, including investment conditions, energy costs, foreign exchange generation, state-owned enterprises and taxation. The Chamber’s position emphasizes that macroeconomic stability needs to be accompanied by structural and regulatory improvements that can support private-sector investment, strengthen export capacity and improve energy security over the medium and longer term.
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