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CE urged to declare war on IPR issue

RECORDER REPORT

KARACHI: Philippe A. Bovay, President, the American Business Council (ABC) of Pakistan, has suggested to the Chief Executive, General Pervez Musharraf to "declare war on Intellectual Property Rights (IPRs) issue", which is causing a loss of Rs. 9 billion annually to the national exchequer.

Addressing a press conference here on Thursday afternoon, he said : " the government is doing a good job of listening to us. We have to applaud the government," he said and added: "It is a good team and we have lot of confidence in it."

Tasleemuddin Batlay, a member of the executive committee of ABC who was also present, said that their business associates in the United States and the United Kingdom are interested in expanding business here.

Bovay said has tabulated the calendar 1999 results for their members just 45 days after the end of 1999, in order to provide an up to date report on the state of their businesses, an accordingly potentially on a portion of the economy.

According to these results sales were up more than five percent for 1999 vs. 1998 for two-thirds of the responding members. Disappointingly, one third of the members reported lower profits, and another eight percent posted losses, he said.

Despite the disappointing profits, he said, there seems to be a significant increase in contributions to the national exchequer, with 67 percent reporting an increase. This is likely due to presumptive taxes and a general increase in taxation.

"We are pleased that the government is showing a keen interest in listening to the opinion of the ABC and business community in determining what specific actions are needed to move to clear economic growth," according to the perspective provided by the ABC's executive committee.

Bovay said in order to stimulate economic growth the ABC continues to strongly encourage the government to (i) reduce total business taxes and levies on the existing tax payers while widening the tax net, (ii) consider a reduction in personal income taxes in order to provide more disposable income to the common man, (iii) resolve the remaining issues of IPPs and pharmaceutical pricing in order to re-stimulate investments in these areas as well as eliminate these negative points from the agenda, and (iv) take firm steps to end counterfeits in order to protect the common man as well as stimulate jobs and government revenue from the genuine manufacturers.

The ABC urged the government to act firmly and decisively now on some of the issues, particularly those which are guaranteed revenue increase projects. Taking firm steps now to end counterfeits is an example.

The American Business Council comprises of over 50 members who contribute over Rs. 17 billion to the national exchequer, representing over five percent of CBR's income. Members of the ABC create 19,000 jobs in Pakistan, and in addition have over 600 Pakistani citizens overseas in broadening and training assignments, Bovay said.