ICCI Chief Urges Reforms to Bring Capital Back

Islamabad: (Web Desk) President of the Islamabad Chamber of Commerce and Industry, Sardar Tahir Mehmood, has called for urgent economic reforms, stressing the need for business-friendly policies to encourage the return of capital that has moved abroad.

In a recent interview, he highlighted that a considerable amount of Pakistani investment has shifted overseas due to an unfavorable business environment at home. Investors, he noted, are naturally drawn to countries offering economic stability, lower tax burdens, and simplified regulations.

Sardar Tahir Mehmood pointed out that Pakistan’s current tax structure — ranging between 58 to 62 percent — along with policy uncertainty and complex regulatory systems, has discouraged both domestic and foreign investors. He emphasized that capital flows toward markets where policies are predictable and business operations are easier to manage.

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He also drew attention to structural bottlenecks, particularly delays in approvals from development authorities, which have slowed down investment activity in key sectors such as construction. Despite a housing shortfall estimated at around 20 million units and steadily rising demand, investors remain hesitant due to operational and regulatory challenges.

The ICCI chief further remarked that initiatives like the Special Investment Facilitation Council alone cannot deliver desired results without meaningful, on-ground reforms. He urged the government to focus on tax rationalization, streamlining regulations, and introducing policies that actively support investors.

While acknowledging the current challenges, he expressed confidence in Pakistan’s economic potential, citing its resilient economy, favorable climate, and untapped opportunities across multiple sectors — particularly in construction — if the right reforms are implemented.