ISLAMABAD: Pakistani Minister for Commerce Jam Kamal Khan on Wednesday met representatives of nine American companies operating in Pakistan and reassured them Islamabad was working to address their concerns on issues like taxes, inflation and creating a business-friendly environment.
Foreign investors cite persistently high inflation, red tape, weak rule-of-law, inconsistent regulation, corruption, political uncertainty, and security concerns as being among the main difficulties of doing business in Pakistan.
Pakistan, in search of foreign investments to shore up its $350 billion economy, has been struggling to maintain liberal investment policies and facilitate investors on all stages of their investments. The government says it is also working to improve legal protections for foreign investments, protect intellectual property rights, and establish clear and consistent policies for upholding contractual obligations and settlement of tax disputes. The government launched the Special Investment Facilitation Council (SIFC) last year to attract foreign funds, particularly from Gulf Cooperation Council countries. Since its creation, the SIFC’s scope has expanded into a wide range of policy areas.
On Wednesday, the American Business Council (ABC) delegation that called on Khan briefed him about “concerns related to high taxes, inflation, and the need for increased government support to foster a conducive business environment.”
The visiting delegation included representatives from McDonalds, IBM, PepsiCo, Coca-Cola, PriceOye, Philip Morris tobacco company, DuPont, a chemicals company, Cargill, a food multinational and AICT, which provides smart container management solutions.
Khan assured the ABC members the government was “fully committed” to addressing their concerns.
“He acknowledged the challenges faced by businesses in Pakistan, especially in light of inflation and other economic hurdles,” the statement from Khan’s office said.
“The Minister expressed his confidence that the government is actively working on solutions to mitigate these issues and improve the economic landscape for both local and foreign investors.”
Despite the challenging investment climate, the United States is one of Pakistan’s largest sources of FDI. US companies have profitable operations across a range of sectors, notably franchise operations, fast-moving consumer goods, agribusiness, and financial services. Other sectors attracting US interest include ICT, renewable energy, and health care services.
The Karachi-based American Business Council, a local affiliate of the US Chamber of Commerce, has more than 60 US member companies, most of which are Fortune 500 companies and span a wide range of sectors. The Lahore-based American Business Forum has 23 founding members and 22 associate members. The US-Pakistan Business Council, a division of the US Chamber of Commerce, supports US-based companies that do business with Pakistan.
In February 2023, the United States and Pakistan concluded the ninth meeting under the US–Pakistan Trade and Investment Framework and first ministerial-level meetings since 2016.