The American Business Council of Pakistan (ABC) has urged the government to formulate business-friendly policies, improve the law and order situation and resolve the energy crisis to attract much needed foreign investment in different business segments of the country.
In a statement issued after the first ABC CEO roundtable meeting of CY-2014 where business leaders discussed the performance of their companies in CY-2013 and the prevailing issues, ABC the largest single country investor group in Pakistan, reinforced its commitment to Pakistan while urging the government to resolve the issues which are detrimental to growth.
Despite having faced uncertainty on account of a poor law and order situation, election year and inconsistent government policies in CY2013, ABC member companies viewed the year ahead with optimism. For 2013, 65 percent of the participants had an average business performance. When asked of their sentiments and outlook for 2014 there was renewed optimism amongst 70 percent of participants who expected growth but planned to hold off investment till there is further clarity with respect to the fiscal, trade and monetary policies.
ABC praised the efforts of regulators including the Federal Board of Revenue (FBR), Securities and Exchange Commission of Pakistan (SECP) and Competition Commission of Pakistan (CCP) in improving business environment and providing a level playing field.
However, there is a lot to be done to further strengthen the regulations, especially regarding expanding the tax net, enforcement of Intellectual Property Rights (IPR) as well as the Environment Protection Ordinance. Lack of enforcement in these particular areas poses a major deterrent to foreign investment. It was suggested that the government urgently constitute an IPR Board to curb the menace and come hard on IPR violations to send out a positive message to foreign investors.
"The government needs to formulate long term, strong, efficient and business friendly policies and share the roadmap of its strategy to overcome the energy crisis and improve law and order conditions which will encourage the business community to expand and invest further," stated ABC President, Saad Amanullah Khan.-PR