December 19, 2003	Friday	Shawwal 24, 1424

KARACHI, Dec 18: The number of American Business Council (ABC) member companies have come down from 58 in 2002 to 54 this year. Out of these 54 companies, 41 or 76 per cent have responded to an informal perception survey for the year 2003.

During 2002, the ABC had issued the results of such a perception survey based on responses from 40 out of 58 member companies in October last year. This year, the number of member companies is 54, indicating that the reduction has come about from mergers and acquisitions or closure of business of may be one or two companies.

Briefing reporters about 2003 perception survey results, ABC President Anjum Fasih said on Thursday that 77 per cent of the American companies were planning further investment in Pakistan. It means 31 out of 41 responding companies are planning investment and business expansion.

“We have no sector-wise break-down of the prospective investment,” he answered when asked if he could give the sectors where investment is expected to be coming. The last year survey in 2002 indicated investment plans from 15 companies. The current year’s survey neither confirmed nor indicated how much of this investment has come.

The ABC chief said that 88 per cent of the ABC members were optimistic about Pakistan’s overall prospects and 93 per cent of the companies “feel improvement in domestic economic conditions”.

He said that 45 per cent of the ABC companies believed government policies are “more consistent” and 31 per cent feel that there was improvement in implementation of the policies.

A satisfaction on overall business environment and government policies has led 90 per cent of the member companies to show increase in their gross revenues in dollar terms and 84 per cent in rupee terms. Of these companies, 86 per cent reported a surge in their pre-tax profits.

The survey also showed that 64 per cent of the companies indicated improvement in the working of the State Bank and also some improvement in the other government departments.

As many as 78 per cent companies observed improvement in external political situation, which obviously is an oblique pointer to rapid improvement in India-Pakistan relationship. Interestingly, only 29 per cent indicated improvement in internal political situation and 37 per cent of the companies see no change.

“The feedback received from our members indicates significant improvement in their perception about the conditions that affect the business and future investment plans,” Mr Fasih remarked on the results of the perception survey.

He, however, urged the government to focus on improving situation regarding corporate and personal taxation, effective laws and enforcement of Intellectual Property Rights that is patents, trademarks and copyrights, deregulation, including pharmaceutical pricing and oil marketing companies margins, combating corruption and smuggling, tariff rationalization, improving corporate governance, improving infrastructure and law and order situation and transparency in government decision making.

The ABC chief assured support to the government and expressed willingness to work with it for further improvement in the investment climate, which could lead to a sustainable growth of the economy for the benefit of people of Pakistan.

He disclosed that ABC member companies directly employed about 20,000 persons and indirectly supported 120,000 persons of the family and indirectly provided employment facilities to 50,000 more persons.

Of the 54 member companies, the ABC has higher number of 11 pharmaceutical companies, eight information technology, five financial services, five food and beverages, five chemicals and fertilizer, four energy, oil and gas, two engineering, two textile and 12 other companies.