Overseas Investors Chamber of Commerce and Industry (OICCI), the largest chamber in terms of economic contribution and representing top 200 foreign investors in Pakistan, has released the results of its latest Annual Security survey 2020, covering feedback on the security environment from July 2019 to June 2020.

During the financial year 2020 (FY2020), the total money inflows to Pakistan were around $3.692 billion while the outflow was $3.060 billion, with around $632 million investment in T-bills remaining intact.

Overall, the foreign investors have shown high level of satisfaction on the fast improving security environment and have also appreciated the performance of law enforcement agencies (LEAs) in the main business centers of Pakistan, Karachi and Lahore, raising the security satisfaction profile of the two cities and bringing them at par with other megacities in the region.

OICCI 2020 Security Survey indicates that the foreign investors, overall, are impressed with further improvement in the security environment over the past twelve months, since July 2019, especially in Karachi and Lahore, with noticeable improvement in other business centers as well.

While giving assessment of the overall security situation, 60 per cent of the respondents have reported improved security environment for own and Customer’s Business, as well as for their respective suppliers and employees.

Foreign investors have renewed their interest in the country’s Treasury bills (T-bills) as they bought short-term instruments worth $51 million during the month of June, data released by the State Bank of Pakistan (SBP) showed.

Foreign investment in the country’s T-bills had peaked in March this year before the Covid-19 shock caused abrupt outflows.

The latest SBP data showed that despite drastic cuts in the T-bill rates, foreign investors bought $51m in government papers in June -- the last month of the FY2019-20.

Moreover, the data also showed that foreign investors did not pull out all their investments in the last fiscal year that ended on June 30.

Commenting on the survey findings, Haroon Rashid, President OICCI said: “The smooth and professional handling of the brazen attack on Pakistan Stock Exchange on June 29th, and restoring order within a very short time, is a testimony of the OICCI members’ confidence in the ability of the LEAs to professionally combat any threat to life and property in the country”.

The OICCI President added “foreign investors are not deterred by isolated incidences and continue to take a holistic view of the operating environment, which, OICCI members perceive to be highly positive showing continuous improvement.”

The survey respondents included CEOs and senior management of member organisations, and was participated by 70 per cent of the OICCI’s 200 members, who belong to 35 countries and operate in 14 key sectors of the economy in Pakistan. It may be noted that over two third of the OICCI members have their head offices in Karachi with operations all over country. The survey was conducted from May 15th till June 22nd.

Irfan Siddiqui, OICCI Vice President pointed out that “this improvement is over and above the already improved security environment last year, and the continuous improvement recorded in the OICCI members annual security surveys since 2015”.

He further added that “It is highly encouraging that despite many disruptions during the past twelve months, due to Azadi March in December 2019, border tension with India during Q3 2019, and subsequent travel restriction since end March 2020 due to COVID 19, the visit of foreign nationals visiting Pakistan for OICCI members business, pre COVID 19, showed a healthy increase, as over 40 per cent respondents reported more visitors than last year, with 26 per cent hosting more than 50 visitors and most respondents getting between 20 and 50 visitors.”

The foreign business visitors were mainly from China, UK, USA, UAE, as well as other European and Asian countries.

Due to the sustained improvement of the security environment, OICCI members reported that over 90 per cent of the Board and management meetings of their Pakistan business operations, involving HQ and/or Regional Management, were held within the country.

In terms of serious crimes, 87 per cent respondents indicated a decrease over last year in Karachi and Lahore. However, the survey respondents have expressed concern on the increasing trend of street crimes. All in all, 37 per cent respondents in Karachi and 27 per cent in Lahore reported concern on increasing street crimes.

NNI/Agencies