Following the significant drop in street crimes and terrorist attacks in Pakistan, many investors have started to see the country as a lucrative place to invest. A recent report by American Business Council (ABC) of Pakistan confirms that approximately 78% firms registered with ABC in the United States are planning to invest in Pakistan in the next 12 months.
ABC is one of the biggest investor groups in Pakistan with 67 members – most of them represent Fortune 500 firms. Also, members of ABC operates in many sectors such as healthcare, fertilizers, energy, Fast Moving Consumer Goods (FMCG), financial services and Information Technology (IT).
As per the survey results, the main reason behind the commitment of foreign firms to invest in Pakistan is the improved security situation. The survey result also indicates a significant improvement of almost 30% in the foreign perception of security related concerns in the country, compared to the corresponding fiscal year.
Moreover, almost 83% of ABC investors seem optimistic about the long-term economic and operating climate in the country. However, it is worth mentioning that the members of ABC have also commented that the tendency of regulatory bodies to introduce mini budget along with unexpected changes in policies can have an adverse impact on investors’ confidence.
“Such steps negatively impact existing as well as new investments,” stated a press release.
Majority of the ABC investors rated the business climate of the country in 2015-16 as satisfactory with only 8% giving it a poor rating. Adding to that, the participants were asked to rate the business climate on the country based on the including political and economic factors as well as the performance of industries and businesses in the country in the last two fiscal years. Also, investors of ABC believethat there has been a significant improvement of 30% in law and order situation compared to the previous year.
‘Our members are positive and remain committed to Pakistan,’ said Mr. Sami Ahmed, President of American Business Council of Pakistan.