KARACHI, Oct 25: Only 40 companies out of a total of 58 member companies of the American Business Council (ABC) have responded to a perception survey carried out a few weeks ago, and 31 per cent or 18 companies have preferred to remain non-committal.

A press release issued on Friday, based on the findings of an “informal business survey” of the ABC members, disclosed that 59 per cent of the responding members (15 companies) are planning investments in Pakistan and 85 per cent (34 companies) have indicated improvement in Pakistan’s overall prospects.

The ABC conducts this perception survey annually to assess how its members view the investment climate in this country. However, last year, the survey was not conducted due to impact of post-9/11 events. The feedback of this survey, the Press release said, was based on the responses received from 69 per cent (34 or 35 companies) of the 58 member companies. The release is silent as to why 18 member companies did not respond to the survey and preferred to remain non-committal on the questions.

The press release says that 73 per cent of the respondents (29 companies) indicated improvement in the domestic economy as against 40 per cent in last survey.

Some 33 companies (83 per cent of respondents) reported increase in their gross revenue in rupees and 31 companies (78 per cent) in the US dollar terms. As many as 30 companies (75 per cent of respondents) indicated increase in their pre-tax profits and 27 companies (68 per cent) felt the government was positively impacting the business.

As many as 28 companies (70 per cent) indicated more consistent policies and 15 companies (63 per cent) observed some improvements in the implementation government policies.

About 95 per cent (36 companies) expressed the view that ABC’s suggestions were partly incorporated by the government during the last year. Most of the responding members were satisfied with the working of the government departments.

The press release quotes president of the ABC Arshad Nasar, “the ABC very much looks forward to working with the new government of Pakistan to further improve the investment climate, which can lead to a sustainable turn around of the economy for the benefit of the country and all its stakeholders,” he added.

The ABC chief noted with appreciation Pakistan government’s serious endeavour to address various key issues. which include good governance, law and order, adopting long-term consistent policies, documentation of the economy, tax reforms, deregulation, privatization and implementation of IPR laws, improving the infrastructure and making efforts to make Pakistan’s external image more positive.

According to the press release, the ABC functions as Chamber of Commerce and Industry of American business in Pakistan pointing out that it was “largest group of single country investors in Pakistan”. The ABC has 58 members, which employ over 17,000 people. Most of the companies have an investment of around one billion dollars in Pakistan and contribute about Rs27 billion to the national exchequer as direct and indirect taxes which is 6.6 per cent of the total tax collection of Pakistan government.