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KARACHI (January 27 2006): The American Business Council of Pakistan (ABC) in its annual survey has highlighted that 67 percent of the American companies had plans to increase investment in Pakistan as opposed to 57 percent in 2000.
The survey is based on members' perception of business, economic and investment climate in the country as well as the performance assessment of relevant government departments.
Zubyr I Soomro, President, ABC in a presentation to media here on Thursday said that 2005 survey results have been compared with 2000 results to reflect the trends over five years.
According to the survey on the domestic economy 98 percent members were positive as compared to 40 percent five years ago. The external political position was deemed positive by 96 percent whilst in 2000 there were only 21 percent. In 2005, 85 percent were positive about the internal political situation as compared to 38 percent in 2000.
Over 98 percent members were positive about the consistency of policies up from 48 percent in 2000. Implementation of policies received positive response from 89 percent whilst State Bank of Pakistan received 100 percent positive response from the members.
Both Securities and Exchange Commission of Pakistan (SECP) and Central Board of Revenue (CBR) received 98 percent response. Approximately 96 percent members were positive about the income tax and 95 percent about customs. Members expressed negative sentiments about the Export Promotion Bureau, Ministry of Industries and Production, Ministry of Health, Ministry of Labour and Manpower as well as law and order. Soomro also said that ABC members continued to be optimistic about the overall business climate and domestic economy. Majority of members plans further investment in Pakistan in the next 12 months. Also most members have reported growth in revenue and profits versus last year.
He also said that the ABC members and their parent companies were quick to respond to Pakistan's recent worst ever-natural disaster. Many of the members and their parent companies are engaged in multiple relief efforts to mobilise funds and relief goods both locally and internationally.
The cumulative relief funds and goods committed by ABC members now exceed Rs 2.3 billion ($38.5 million). Soomro further stated that on the Prime Minister's current visit to the USA, CEOs of various American companies (some of which are members of ABC) informed him that contributions to the South-Asia Earthquake Relief Fund (SERF) now stands at $70 million. ABC is affiliated with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and is a member of the US Chamber of Commerce (USCC), Washington DC, and Asia-Pacific Council of American Chambers of Commerce (APCAC).
ABC also has a close working relationship with the US-Pakistan Business Council, Washington that is a component of the USCC. ABC members have cumulative revenues of about $2 billion and an investment of over $1 billion in Pakistan. ABC members contribute a sizeable amount to the national exchequer every year as direct and indirect taxes. The last year's contribution about Rs 35 billion, which is eight percent of the total taxes collected by the government.
ABC members also employ 22,000 persons directly who support 100,000 dependents and indirectly employ over half a million people with agents, distributors, etc.
Besides adherence to the highest quality standards, the US investment has brought about transfer of sophisticated technology to Pakistan, which is updated on an ongoing basis.
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