KARACHI, Dec 29: Around 72 per cent of the US-based multinational companies in Pakistan are planning to expand their investment, Nadeem Karamat, President of the American Business Council (ABC) informed a press conference on Wednesday.

Nadeem Karamat shared the results of an informal perception survey 2004 done by the ABC. The ABC sought response from 57 American companies out of which 51 responded and 12 per cent remained silent on the issues raised in the questionnaire.

The perception survey result shows that about 36 American companies or 72 per cent of the 51 companies are planning to expand their investment as they hold positive opinion about the economy and business conditions.

"We are encouraged by government's endeavour to give priority to key challenges like effective enforcement of Intellectual Property Rights, rationalization of tariff and duties, security, law and order, good corporate governance and extension of tax net to those that are outside from it," the ABC Chief remarked.

He said that 80 per cent of the responding companies have a positive opinion about the current business climate. As many as 90 per cent felt domestic conditions were better than last year.

A significant finding of the perception survey is that 80 per cent companies reported increase in gross revenue, both in dollar as well as in rupee terms. "Seventy-eight per cent companies reported improvement in pre-tax profit," Nadeem Karamat pointed out while disclosing that 70 per cent companies noted improvement in external political situation.

"We have not captured the impact of WTO regime on Pakistan in our survey," the ABC president responded to a question but said that liberalization of trade and the relevant steps has encouraged the American companies.

He said the normalization process in South Asia is also being viewed with great interest by the American companies, and it would further improve the business environment in the region.

About 28 per cent of the responding American companies felt improvement in domestic political situation while 42 per cent other companies are as optimistic as last year. As many as 63 per cent companies believe that government policies are now more consistent and 61 per cent felt that government's effect on business improved over last year.

By and large, the US companies in Pakistan observed significant improvement in working of the government agencies and institutions and these were satisfied with the working of Export Promotion Bureau, State Bank of Pakistan, Central Board of Revenue and Securities and Exchange Commission of Pakistan. The American companies, he said, were contributing Rs35 billiion to the national exchequer.