Majority of companies perform well in 2010

KARACHI: Despite difficult security and economic conditions in the country, 60 per cent companies did well in the year 2010 and 40 per cent plan to invest again in 2011, American Business Council (ABC) President Humayun Bashir said on Wednesday.

Addressing a press briefing on ‘ABC’s first roundtable and financial survey’ at the ABC secretariat, Bashir, however, pointed out that problems like rising cost of doing business, security concerns and inconsistent government policies continued to hamper economic growth in 2010. Government consultation with business associations has been poor, especially over the last two years, he said, adding that this had been better in the previous two years. “The consultation process between the government and businessmen should have been better owing to tougher times, but unfortunately the situation is opposite.”

In spite of that, the chief executive officers (CEOs) associated with the ABC have expressed the hope that political stability and dialogue process between political parties will lead to a consensus on different economic issues, he said.

The economy will continue on the challenging path in 2011, but the outlook for 2012 to 2015 seems positive as per forecasts of economists and sectors like information technology, fast-moving consumer goods and agriculture will receive more investments, Bashir said.

Replying to a question, he said personal security problems have increased significantly in the last one year and Karachi tops the list of cities where security is the biggest problem. Pakistan’s economy is very resilient as, some of the economists pointed out, the economy bounces back every year after low performance.

Bashir said the government needs to take care of both internal and external problems. External problems like oil prices and internal problems like security and energy crisis should be at the top of the government agenda.

He said that the business community has also expressed concern over the increase in utility rates, which are higher than those in regional countries. The member-companies of ABC are mostly among Fortune 500 with cumulative revenues of over $3 billion and investments of $600 million. ABC is a chamber of commerce and industry of American businesses in Pakistan, affiliated with the Federation of Pakistan Chambers of Commerce and Industry.

Published in The Express Tribune, January 27^th, 2011.