ISLAMABAD, APR 20: President of the Islamabad Chamber of Commerce and Industry, Sardar Tahir Mehmood, has emphasized the urgent need for business-friendly policies, tax rationalization and regulatory reforms to bring back capital that has been transferred abroad.
Speaking in an interview, Sardar Tahir Mehmood highlighted that a significant amount of Pakistani capital has moved overseas due to unfavorable domestic conditions. He noted that investors prefer countries offering stability, lower taxation, and ease of doing business.
He pointed out that Pakistan currently faces excessively high tax rates, ranging between 58% to 62% along with complex regulations and policy uncertainty, discouraging both local and foreign investment.
“Capital naturally flows to regions where there are opportunities, simplified regulations, and stable policies,” he stated. “Unfortunately, the current business environment in Pakistan does not provide these incentives.”
The ICCI President also underscored structural issues such as delays in approvals by development authorities which have further hindered investment, particularly in the construction sector. He stressed that despite a housing shortage of approximately 20 million units and an annual increase in demand, investors are reluctant to invest locally due to operational barriers.
Sardar Tahir Mehmood further remarked that institutions like SIFC alone cannot attract investment unless supported by practical reforms. He called for comprehensive policy changes, including, Tax rationalization, Simplification of regulatory frameworks, Introduction of investor-friendly policies and improved ease of doing business.
He expressed optimism that Pakistan has strong potential due to its resilient economy, favorable climate, and untapped opportunities across multiple sectors, especially construction.
