OICCI urges investment, exports and structural reforms in Pakistan during IMF meeting

The Overseas Investors Chamber of Commerce and Industry (OICCI) urged Pakistan to use recent macroeconomic stabilization to accelerate private investment, exports, energy security and structural reforms during a meeting with a visiting International Monetary Fund (IMF) delegation in Karachi on Thursday.

What structural reforms in Pakistan did OICCI call for?

OICCI called for lower regulatory and compliance burdens, stronger investor protection, clearer federal-provincial coordination, faster SOE reform and credible privatization. It also urged the state to separate its policymaking, regulatory, facilitation and commercial roles, and broaden taxation into under-taxed sectors instead of repeatedly increasing the burden on documented businesses.

The IMF delegation comprised Iva Petrova, Advisor in the Middle East and Central Asia Department, and Mahir Binici, the Fund’s Resident Representative in Pakistan.

They met senior OICCI leadership and representatives of multinational member companies at the Chamber.

OICCI highlighted declining foreign direct investment despite improvements in Pakistan’s external position and sovereign credit profile.

The Chamber said net FDI fell by around 32% to USD 1.7 billion in FY26. It called for lower regulatory and compliance burdens, stronger investor protection and clearer coordination between federal and provincial authorities.

OICCI also said domestic industry should lead by reinvesting in Pakistan, arguing that foreign investors take cues from the confidence demonstrated by local businesses.

On structural reform, the Chamber called for faster reform of state-owned enterprises and credible privatization where continued state ownership has no compelling policy rationale.

It also urged clearer separation of the state’s roles as policymaker, regulator, facilitator and commercial operator to create greater space for private-sector investment and competition.

Why does OICCI want Pakistan to expand exports and energy security?

OICCI said Pakistan cannot sustain higher economic growth without increasing its ability to earn foreign exchange. It called for stronger export-oriented sectors, greater competitiveness and productivity, deeper trade and investment ties with key markets, and more regional trade where commercially viable, alongside measures to strengthen the country’s energy security.

Amid higher oil prices linked to the Middle East conflict, OICCI called for immediate energy-conservation measures and a medium-term plan to increase Pakistan’s energy self-sufficiency.

The Chamber also called for a coherent energy security strategy covering power, gas and petroleum.

It cited high regional energy costs, circular debt, the need for investment in refining and opportunities for regional energy cooperation as areas requiring attention.

On the external sector, OICCI stressed that Pakistan needs stronger competitiveness and productivity to expand its capacity to earn foreign exchange.

It called for stronger export-oriented sectors, deeper trade and investment links with key markets and greater regional trade where commercially viable.

On taxation, the Chamber urged the government to broaden the tax base into under-taxed segments including agriculture, real estate, small and medium-sized enterprises and retail.

OICCI said this should take priority over repeatedly increasing the tax burden on documented businesses.