In view of the security and energy issues in the country no major new investment was made in 2011 other then the capital needed for existing facilities. This was stated by American Business Council of Pakistan (ABC) in a statement after its first CEO Roundtable meeting of the year held on January 26, 2012. The meeting was attended by members of ABC, representing a cross section of sectors including healthcare, financial services, information technology, FMCG, food and beverage, pharmaceuticals, oil and gas, and others. However, the statement says, the year 2012 bodes better for new investment plans for over 60 per cent of the companies present today. Only one company has plans for green-filed investment all the same.
Referring to the key challenges highlighted by the council last year, it said the following issues were raised:
1. Security situation over all was highlighted as the biggest area of concern, plus personal security and travel issues.
2. Taxes and inconsistency of government policies especially regarding pharma and oil and gas.
3. Increases in cost of business, high interest rates, cost of power and utilities (gas), rise in cost of transport and logistics.
4. Billions of dollars are stuck in oil company subsidies.
5. Sudden devolution of the health ministry has negatively impacted pharma companies.
No major investment in 2011: American Business Council
