Over the period of next 12 months, 78% American companies are looking forward to invest more capital in Pakistan. An insight survey by American Business Council of Pakistan (ABC) claims 13% growth in it as compared to last year.
According to the survey, it states that this positive response of investing companies is mainly due to the country’s improving security situation. In comparison to last year, the survey exposed 30% improvement in the country’s security situations.
As compared to 65% from last year, 78% American companies have shown interest to invest in Pakistan this year.
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On the other hand, 83% of ABC investors are looking forward to devote capital and hope to see a long-term fiscal growth in the country. Nevertheless, each one of the investors separately stated that sudden changing trend in polices and minibudgets highly effect the motivation of investors.
Performance of Business Operations and Factors Affecting it
A press release statement read:
“Such steps negatively impact existing as well as new investments”
After being permitted by the perception survey, ABC members rated their satisfaction. The rating was done according to various economic and political factors affecting the business status in Pakistan over fiscal year 2015-16.
In addition, the environment of the business was rated on the various influential factors; including government trade policies, development budget, and domestic and foreign political conditions and law and order situation.
For 2015-16, majority of the members exhibited satisfaction over the business environment of Pakistan while only 8% poorly rated it. It demonstrates a great improvement, as compared to the 2014-15 phase when 11% members rated it poor. American investors expect a great improvement in the stability of economic conditions and environment in Pakistan.
The members were also requested to rate the performance of each of the various ministries directly involved in the business environment. As compared to last year, a slight improvement was rated in this regard as well.
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78% members rated the performance of The Ministry of Petroleum and Natural Resources as fair, reflecting a great improvement. On the other hand, 16% members rated it as poor. For 2014-15, 51% members had rated the ministry as poor and only 46% rated it as fair.
President of ABC, Sami Ahmed said:
“Our members are positive and remain committed to Pakistan”
Ahmed additionally said that being a competitor with other Asian countries, Pakistan should work on the international standings and insights as well. This will help Pakistan to attract more foreign investment through exports, HR and foreign direct investment.
About the American Business Council (ABC)
The ABC is a representative of Fortune 500 companies and one of the largest investing companies in Pakistan. It has 67 members and it specializes in different departments, such as financial service, IT, healthcare, minerals, food, oil, fast moving consumer goods (FMCG) and more.
Collectively, they generate revenue of $4 billion and contribute almost PKR 102 billion to the national exchequer through direct/indirect taxes. During the period of 2015, its members generated PKR 6.6 billion through export.
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