Uncle Sam to spare some cash for his ‘favourite’ nephew

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American Business Forum (ABF) President Salim Ghauri said that ABF member companies will invest millions of dollars in the next two years in Pakistan, subject to political stability. He was extending welcome address to US Ambassador Cameron Munter at the 3rd Annual Dinner of American Business Forum at a local Club. He said the United States of America has a huge stake in Pakistani businesses landscape. They have invested hundreds of millions in Pakistan because they believe in Pakistan’s potential. In the next two years 350 to USD 400million will be invested in Pakistan by ABF Member companies, he added.
Salim said the ABF members are also credited for 15,000 direct and 30,000 indirect employment in the last one year. American businesses are not only the largest source of Foreign Direct Investment in Pakistan; they are also the heaviest tax payers, he added. He said as Pakistan continues to pave its way towards a mature, more stable democratic future, 2012 promises to be one of the many critical years in our country’s history. The dynamics building up to and eventually through the elections themselves can prove to be challenging, but I genuinely believe that Pakistan is now mature enough to overcome the difficulties and emerge out the other side even stronger, and best geared for the future, he stressed. However, said President ABF, in order to truly realize the economic potential of the country, the Government needs to take concrete steps towards tax rationalisation, in line with the examples of BRICS and emerging Caucasian countries of Central Asia, where corporate & personal income taxes are kept at lower rate to encourage investment and spending. Already, he pointed out, the election year would imply an election budget, and a surplus of irrational funds and unnecessary cash flow will be available at this moment. This will only go on to an imbalance in the economy, and ultimately negatively affect our trade deficit. The ABF companies will have a great role to play in this phase of Pakistani politics, he added.
Salim underlined that members of ABF have played an instrumental role in community building as part of their Corporate Social Responsibility efforts – as we are well aware of our role as responsible corporate citizens. In fact, US companies were amongst the first to respond and support people during the tragic 2010 and 2011 floods, which affected more than 20% of the country. Companies like Coca-Cola, PepsiCo and others are the reason why our communities continue to receive short and long term support, in the time of need. Even through ABF platform, members have contributed towards construction of houses, which will soon be commissioned in Sindh and handed over to the people affected by flooding. He said the ABF has also signed an MOU with USAID to make ABF eligible for economic and humanitarian assistance. Salim said he was invited recently by the State Department to represent Pakistani business community at the Global Business Conference in Washington DC. With Hillary Clinton as the chair person and with representatives of more than 120 countries in attendance, it was a great honour and a humbling moment to be recognised at such a forum. It was also a great opportunity to learn about the directions and aims of the international community, looking at business opportunities and evaluating our own standing within international community. President ABF also appreciated the US Consul General, Nina Fite and her office for support and cooperation with local business community.