2007年-世界发展银行全球_Foreign_Stakeholders__Perception_Survey_22页_274kb

Pakistan Infrastructure Implementation Capacity Assessment (PIICA) - Foreign Stakeholders' Perception Survey Summary

Objective

The objective of the survey was to assess the perceptions of international contractors and consultants regarding the business environment in Pakistan and to understand the factors that influence their interest in pursuing business in the country. The survey aimed to identify the key challenges and opportunities for foreign stakeholders in the infrastructure sector of Pakistan.

Methodology

• A web-based questionnaire was developed with the assistance of Gallup (Pakistan).
• It was hosted on the website of Engineering Associates, a leading consulting firm in Pakistan.
• A sample of 59 international firms was selected from the top 100 firms listed in the Engineering News Record (ENR).
• Out of these, 26 consulting and 33 construction firms were contacted via telephone.
• Personalized e-mails with website access were sent, and follow-up calls were made to encourage responses.

Summary Findings

• Only 5 firms responded to the survey, with 4 consulting firms and 1 construction firm.
• The low response rate indicates limited interest from foreign stakeholders in Pakistan.
• The survey results were compiled despite the lack of statistical significance due to the small sample size.

Attributes Defining "Worst" and "Best" Business Environment Countries

• Worst Business Environment Countries (as identified by respondents):
  • India (4)
  • Vietnam (3)
  • Thailand (2)
  • Pakistan (2)
  • China, Bangladesh, Indonesia, Philippines, Saudi Arabia (1 each)
• Best Business Environment Countries (as identified by respondents):
  • Qatar, Bahrain, Oman (Gulf countries - 3 respondents)
  • Hong Kong, Singapore, Australia, Korea, China, Laos, Vietnam, Thailand, Iran, Yemen, Pakistan (1 each)

Key Issues Identified in Challenging Business Environments

The following issues were identified as major challenges:

• Executing agencies lack professional planning
• Executing agencies lack proper execution and implementation skills
• Regulatory framework discourages interest from international contractors and consultants
• Too many bureaucratic procedures involved in conducting business
• Corruption
• Politically motivated interference restricts the entry of reputable international contractors and consultants
• Law and order situation makes these countries high risk
• Political instability
• Practice of awarding contracts based on the lowest-bid
• Lack of transparency in procurement and contract administration
• Negative image of the country

The weighted average score for "challenging" countries was 3.8, while for "good" business environment countries it was 2.1, indicating that all issues in "good" countries were rated as minor or non-existent.

Key Attributes Defining Perceptions About Pakistan

Based on the survey responses, the following issues were highlighted as key concerns for foreign stakeholders:

• Overall negative image of the country
• Lack of adequate management capacity of client agencies
• Lack of transparency in procurement and contract administration
• Practice of awarding contracts based on low bids
• Political instability and law and order issues
• Political interference discouraging international joint ventures
• Government trade policy not supporting international entry
• Weak executing government institutions

Factors That Would Attract Foreign Firms to Pakistan

• Improved law and order situation
• More mega-sized projects
• Reduction in the cost of doing business

Sample Response

• The survey received responses from only 5 firms, indicating a very low participation rate.
• The majority of respondents believed that Pakistan is not on their list of preferred countries due to the availability of work elsewhere.
• The low response rate suggests a lack of interest from foreign firms in Pakistan.

Box 1: A Respondent's Comment

"We were induced into coming into Pakistan by one government and then with each change in government the manner in which our project was treated also changed. The government however not only unlawfully terminated the project but also robbed us of our investment by expropriating our assets as well as our contractual rights in violation of all ethical and legal principles under international law. In the final analysis, we would not consider investing in Pakistan nor would we advise anyone else to do likewise."

Conclusion

• The survey highlights that demand-side factors such as institutional capacity, policies, regulations, and the negative image of Pakistan are significant barriers to foreign investment in the infrastructure sector.
• The limited response rate and the low number of firms that rated the business environment as acceptable indicate a lack of confidence and interest from foreign stakeholders in Pakistan.
• The findings suggest that improvements in governance, law and order, and business environment are necessary to attract more foreign firms to the country.