Businesses call for steps to end political uncertainty
By Afshan Subohi
KARACHI, Sept 13: The businesses are approaching the government to urge for an early settlement of the current phase of political readjustments to end the uncertainty. The business outlook, that at the moment is positive, cannot hold for an indefinite period of ambiguity.
Senior business executives disclosed this while sharing their reading of the current political scenario. “The circumstances in the country have led the corporate citizens in Pakistan to keep a close watch at the unfolding situation, but the overall outlook of our members is still optimistic,” said Iqbal Bengali, president of The American Business Council (ABC), who was talking to Dawn after announcing the results of an annual survey of this influential business grouping.
“The government needs to take a decision, whatever it deems suitable, to pull the country out of the current impasse to enable the businesses to move ahead with their business plans,” he said.
“We are hopeful that things will settle before the close of the year, for the stakes are too high. We are strategically too important to be allowed to sink,” said another senior ABC member privately.
The ABC has actively pursued the governments of both the US and Pakistan for close economic relations. “There is a possibility of initialling of a bilateral investment treaty (BIT) soon and that will lead to the next logical step, that is a free trade agreement between the US and Pakistan,” Mr Bengali said responding to a question regarding the role of his organisation in promotion of bilateral economic ties.
Based on an assessment of business and economic climate in the country, the ABC releases results of its annual perception survey about the same time every year. The survey also reflects the rating on performance of relevant governments and departments. The 2007 survey results are based on responses from 85 per cent of its members.
This year’s survey indicates cautious optimism of American companies operating in Pakistan. The ABC members are positive about the overall business and economic climate of the country. Most members, however, expressed concern over the law and order situation, perception abroad and the internal political situation.
According to the results, 92 per cent members are positive about the overall business climate in the country, 80 per cent rated economic climate as satisfactory while 72 per cent expressed reservations over the internal political situation.
Like the Overseas Chamber of Commerce and Industry survey released last week, the ABC survey also found Lahore and Punjab better governed than Karachi and Sindh.
Most respondents, 94 per cent were satisfied with the level of consistency in the policies of the government but about 25 per cent graded the implementation of policies to be poor. About one third of the respondents 38 per cent, saw the external political situation to be poor against as high as 72 per cent expressing their dismay over the internal political situation.
Majority of those surveyed found Pakistan to be a country that offered a level-playing field for multinationals with its liberal regime for overseas investors, with no restrictions on movement of their capital and dividends.
“The only way is the way out of the current phase of uncertainty and that is the way the country will move. Let the country negotiate this difficult turn and I see a very bright future for the economy beyond that,” Irshad Ali Kassim, president Karam Ceramics Limited, told Dawn.
“The current few million dollars investment by overseas company a year can multiply manifold if infrastructural bottlenecks are removed and other sectors are allowed type of economic space granted to financial and IT sectors,” said Reza Rahim of JP Morgan on the sidelines of the press briefing.
“The multinationals cannot lose nerves that easy as we are here for a long haul. Most of our members have seen political ups and downs over the last many years of their operations in the country and we wish that current imbroglio to settle peacefully,” Mr Bengali desired.
