In prevailing and persisting law and order''s terrible conditions 18 multinational companies are considering to wind up their business in the country, while 88 percent of foreign investors consider measures, taken by the government to control unrest situation inadequate.
President Overseas Investors'' Chambers of Commerce and Industry Waqar A Malik revealed the situation in a launching ceremony of OICCI Perception Survey 2008 at Chambers Office here on Wednesday. The survey, which has been conducted on 175 members of OICCI, only 110 (63 percent) members responded to the survey queries.
The findings came as part of the OICCI Perception Survey 2008, intended "to gain insight into the overall business and economic climate of Pakistan through the perception of existing overseas investors in the country." The survey was conducted during August to September 2008, and is based on responses from OICCI members.
Over dollar-rupee parity president OICCI said the 90 percent of respondents declared it as an impediment, which is affecting the business negatively, adding 62 percent of their members particularly pharmaceutical sectors bitterly criticised the 35 percent tax rate, which is highest in the region.
"The foreign business community also felt regrets over the availability of utility services especially electricity, which has been decreased to 0.9 percent from 14.7 of the their total requirements," the president added.
Over law and order situation that has become a bone of contention in progressing of growing industrialisation, Waqar Malik said that over 96 percent of his community that was 83 percent last year have deemed it far worse in comparison to 2007.
President said that in the survey the ministries of commerce, communication, finance and foreign affairs improved, while law and justice have deteriorated the performance in comparison to the previous year.
Regarding the performances of city government in co-operation and facilitating the MNCs he said the city governments of Karachi and Lahore have been appreciated while Islamabad, Faisalabad and Quetta have lost their previous positions, whereas, the performance of regulatory authorities including State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Pakistan Software Export Board (PSEB) and Board of Investment (BOI) have been lauded.
He said that both in terms of sector and geography, the 175 members of the OICCI collectively contributed more than 14 percent of Pakistan''s total GNP and 33 percent of total tax receipt. The OICCI members provide direct employment to over 100,000 people and have also played an active role in social and community development through their CSR initiatives.
Waqar A. Malik said, "The GoP needs to formulate an effective strategy to address concerns of the foreign investors if it wants to bring about a paradigm shift in attracting FDI into Pakistan". He said that Pakistan is fortunate to have investors from all major trading partners and the government must capitalise on this strength to attract further investment in agriculture, manufacturing and services sectors. "This will not only give boost to the economy but will go a long way in improving the overall investment climate in Pakistan," he added.
He suggested the government should, as part of a medium to long-term investment strategy, also develop a more aggressive and optimistic media campaign to improve law and order situation that would contribute immensely in not just attracting FDI but also in improving Pakistan''s reputation as an investor friendly destination.