Ease of doing business in Pakistan: Government urged to make tax rate competitive

Mike Spanos, PepsiCo Chief Executive Officer for Asia, Middle East and North Africa (AMENA) has said that tax rates should be made competitive for the tax compliant businesses operating in Pakistan as the current tax rates in Pakistan are comparatively higher as compared to other countries.
Talking to a group of journalists here on Saturday, Spanos said that any sudden changes in regulatory or tax policy could possibly hamper business plans as well as fresh investments in the country. Mike Spanos further said that a level playing field and regulations that promote the ease of doing business are key to attracting multinational businesses to make new investments in Pakistan.
"We support the government's commitment to enhancing the ease of doing business in Pakistan. We are confident that in collaboration with the new leadership of Pakistan we will be able to make new investments under a business friendly environment," he said.
Being one of the highest taxpayers of the country, Spanos sounded optimistic that the government of Pakistan would facilitate new investment of the company. However, he also commented that 'as multi-national businesses adhere to strict internal policies as well as global and national food and safety standards, harmonisation of laws and regulations is also a very important component for investors.'
He also discussed the company's support for key pillars of Prime Minister Khan's 100-Day Plan, noting the importance of sustainable development. He elaborated on the upcoming launch of two new programmes to be funded by a US $1 million grant from the PepsiCo Foundation - the philanthropic arm of PepsiCo globally. To this regard, PepsiCo is launching a 3-year programme in partnership with WaterAid to improve access to clean drinking water, sanitation and hygiene for the urban poor in Lahore, Karachi and Islamabad.
These schemes will include hand pumps, new reverse osmosis plants, as well as rehabilitation of existing facilities. Spanos said this partnership aims to benefit approximately 150,000 direct and indirect beneficiaries.
Spanos further stated that in association with Amal Academy, PepsiCo has recently launched a 'Youth Skills Development Programme' in Pakistan, the aim of which is to develop key skills and mindsets in university students, to enable them to realise their potential and launch into meaningful careers. The curriculum for this programme was largely designed at Standford University, where the founder of Amal Academy received his MBA degree.
The main objective of this initiative is to increase employment prospects for 1,000 young adults spread across Punjab, Sindh and Khyber Pakhtunkhwa provinces in 2019, the pilot year, with plans to scale the programme for multiple years across Pakistan which may impact close to 50,000 young adults.
Spanos extended the company's full support to the government on its socio-economic and reform agenda. The PepsiCo delegation visiting Pakistan noted the company's appreciation for the government's focused efforts towards providing a positive business climate for all companies operating in Pakistan.
He said that the PepsiCo has been part of the business community in Pakistan for more than fifty years. The PepsiCo system (including company-owned snacks business and franchised bottling partners and distributors) brings more than 60,000 direct and indirect employment opportunities to the citizens of Pakistan. Together, the system has invested more than US $800 million in the last five years. As one of the nation's leading food and beverage companies, the company works with 160 Pakistani growers to purchase only locally-grown potatoes and corn for its products such as Lay's and Kurkure. This supports an estimated 4,000 jobs while providing critical support for rural economies and empowering farmers with critical training on sustainable farming practices.
Spanos extended an invitation to Prime Minister Imran Khan to inaugurate PepsiCo's new snacks manufacturing facility in Multan early next year. The state-of-the-art facility represents an investment of US$66 million and is expected to create more than 1,500 direct and indirect employment opportunities for Pakistani citizens.
"Pakistan is an important market for PepsiCo AMENA. It is a country with a young and growing population, and the people of Pakistan are its greatest asset. We are proud of our 50 years of history in the country. We have grown by taking a long-term view, making investments that respond to changing societal needs. We strive to be a development partner with Pakistan," Spanos added.
Demonstrating PepsiCo's ongoing commitment to Pakistan, Spanos also discussed plans for the PepsiCo system to invest US $1 billion over the next five years.