Uncertainty to increase amid political impasse

American Business Council identifies challenges facing Pakistan.

KARACHI:

The ongoing political impasse will add to the uncertain economic future of Pakistan and a speedy resolution is imperative to alleviate the concerns of the business community, according to attendees of the American Business Council’s (ABC) roundtable meeting of the year.

They said that while the first half of fiscal year 2014 had been good for business and majority of participants witnessed growth in profits, the last few months have been tumultuous and businesses remained cautious due to the prevalent political disturbances.

ABC organises roundtable meetings of executives to analyse overall business sentiments among member companies.

General consensus among the attendees was that with the International Monetary Fund having delayed its completion of the fourth review amid conditions, risk to continuation of economic agenda remains in case the political turmoil is long drawn out.

ABC recently held its second quarterly Chief Executive Officer Roundtable meeting which was attended by members from various sectors like healthcare, financial services, information technology, food and beverages, pharmaceuticals, oil and gas and others.

ABC President Tauqir Ahmed welcomed the recent exchange of views between American businesses and the government on strengthening the effectiveness of intellectual property rights. He also lauded efforts of the finance ministry to involve and consider the feedback of the private sector within the current fiscal year’s budgetary process.

While these are steps in the right directions, Ahmed mentioned the challenges facing American businesses in Pakistan including issues which have caused great concern to investors. These include poor law and order, political uncertainty, energy shortages, lack of clarity in business policies and a poor enforcement of intellectual property rights (IPR).

“Pakistan has an opportunity to grow its different industries, foster innovation, and create competition,” said Ahmed. “It’s in everyone’s interest to find solutions with the private sector.  But these prospects are jeopardised when intellectual property rights are not enforced.”

ABC members include some of the most prominent business executives, managing amongst them the most prestigious businesses, in Pakistan, most of which are Fortune 500 companies.

ABC has 65 members with cumulative revenues of over $4 billion and an investment of approximately $780 million. The members contribute a sizable amount to the national exchequer every year as direct and indirect taxes with last year’s contribution being Rs87 billion.

ABC member companies employ over 42,000 persons directly who support 170,000 dependents and indirectly employ nearly one million people with their agents, distributors, suppliers and contractors.

Published in The Express Tribune, August 23^rd, 2014.

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