Business climate in Pakistan better than 10 regional countries

Multinationals have words of advice for govt, keep positive outlook for economy

KARACHI: More than half of the multinationals operating in Pakistan believe that the business climate in the country is better compared to other 10 regional countries including Sri Lanka, Bangladesh, Philippines and Vietnam, an Overseas Investors Chambers of Commerce and Industry (OICCI) survey result revealed.

The OICCI managing committee shared the results of the Perception and Investment Survey 2015 with Prime Minister Muhammad Nawaz Sharif on Wednesday. Finance Minister Mohammad Ishaq Dar, Commerce Minister Khurram Dastgir Khan and Board of Investment Chairman Miftah Ismail were also present in the meeting.



OICCI President Atif Bajwa said that the overall results of the survey were very encouraging and reflect improved and positive sentiment of the members of the OICCI - an association that represents over 195 multinationals operating in Pakistan.

“About 82% have stated that they foresee continuing growth in their business and that they are generally committed to making further investment in Pakistan,” he said, according to a press release.

However, Bajwa added that respondents have also highlighted their concern with some aspects of doing business in Pakistan and have indicated that more support from certain government ministries and regulatory bodies is required.



The good news from this year’s survey was that the country’s economy continues to improve. This is a welcome sign for the youth entering the job market with more than half of the respondents indicating that they will add to their employment level.

Moreover, nearly 60% of the respondents indicated plans to make new investments, out of which more than seven out of ten respondents plan to invest more or similar amounts over the next one to five years, as compared to the investments they made in the previous corresponding period.

The planned investment in business and human capital is expected to boost revenue and profitability, as 84% of the respondents are expecting increased sales and 79% expect their profits to rise.

“More than 50% of the respondents have, once again, identified security and energy shortages as the two biggest challenges they face followed by an increasing tax burden, policy implementation and lack of inter-governmental coordination,” Bajwa added.



Despite the above negative perceptions, the survey responses should be encouraging for policymakers as the High Risk rating for Pakistan as a venue for investment, has, in the opinion of the respondents, reduced to 19% from 42% in 2013.

Published in The Express Tribune, January 14^th, 2016.

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