By Commerce Reporter
LAHORE: The Lahore Chamber of Commerce & Industry (LCCI) has expressed serious concern over a sharp 51 percent decline in Foreign Direct Investment (FDI) during July–January FY26, while also raising strong reservations over proposed amendments to the Trade Organisations Rules (TOR) 2013 currently under discussion in the National Assembly.
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According to figures released by the State Bank of Pakistan (SBP), net FDI stood at $694 million during the first seven months of FY26, compared to $1.429 billion in the same period last year. The chamber termed the significant drop a “worrying signal” for investor confidence and Pakistan’s overall investment climate.
LCCI President stated that foreign direct investment remains a critical pillar for sustainable economic growth, industrial expansion, job creation, technology transfer and export enhancement. A consistent decline, he said, reflects deeper structural challenges that require urgent and coordinated policy intervention.
The chamber noted that Pakistan is already grappling with multiple economic pressures, including high cost of doing business, elevated energy tariffs, regulatory uncertainty and limited access to affordable finance. Without immediate corrective measures, the declining investment trend could further strain economic stability.
Simultaneously, LCCI expressed serious reservations over the proposed changes to the Trade Organisations Rules (TOR) 2013, cautioning that amendments introduced without broad-based stakeholder consultation could negatively impact the country’s business ecosystem, particularly small and medium enterprises (SMEs).
In a separate statement, the chamber emphasized that district and specialized chambers play a vital role in representing grassroots businesses, traders, exporters, and women entrepreneurs—especially in areas where access to major city-based chambers is limited.
LCCI leadership warned that any move to weaken district-level chambers or restrict their registration and functioning could marginalize thousands of small traders and entrepreneurs across Pakistan. It stressed that the existing TOR 2013 framework was designed to ensure inclusive representation and structured participation at district, city and sectoral levels.
The chamber urged lawmakers to adopt a consultative approach by engaging chambers, trade associations and the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) before finalizing any amendments.
“The business community believes reforms should strengthen trade institutions, improve governance and enhance coordination rather than reduce representation or create structural uncertainty,” the statement added.
Reaffirming its commitment to constructive dialogue, LCCI called for policy consistency, institutional strengthening and investor-friendly reforms to restore business confidence and promote inclusive economic growth.
