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Investor Perception Study in Punjab

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Gallup Pakistan conducted “Investor Perception Study in Punjab” for the World Bank Group in 2016. Through this study the World Bank could focus on understanding perceptions of various investors in Punjab and how these findings can be used to Improve Government delivery and therefore increase investment within the province.

The study was conducted among both Foreign and as well as local investors with a sample size of 282. The mix methodology of postal, online as well as referral – self-administered was used.

There were some very interesting findings in the study and therefore Gallup Pakistan had some recommendations for GoPunjab to motivate and incentivize investors. To motivate investors, it was recommended that GoPunjab  should focus on promoting important factors such as local infrastructure, political and economic stability in the province to relevant investor groups. This should be done via trade shows, investor delegation meeting etc. It was also recommended that Procedures related to starting a business should be simplified and clarity of guidelines should be improved (and be easily available ) for potential  investors to ensure minimal entry obstacles. Other than that GoPunjab should take measures on reducing corruption as well as the communicating on the perception of ‘reduction in corruption’ to increase investor confidence in business operations.

Key findings from the study:

  • The top 3 motivations investors believe to be important for investing include “Quality of local infrastructure in Punjab”, “Ease of obtaining licence and permits” as well as “Economic stability”.
  • 55% believe quality of infrastructure has improved over the last 3 years
  • The top 2 major entry obstacles are perceived to be weak regulatory implementation (59%) as well as procedures related to starting a business. (59%)
  • 52% of the investor companies had to deal with 2 or more departments to register their business.
  • 25% disagree that the ‘government is working on measures that would allow them to buy more goods and services locally’. Such measures may include tax rebates on locally produced goods, standards on goods, training of manpower as well as a better justice system to protect against violations
  • Corruption (62%) seems to be the highest rated obstacles (major, very severe obstacle) effecting business operations in Punjab
  • 21% of the companies had experienced any grievance with the Government in Punjab. These grievances included bribery, politically motivated price controls, weak contract enforcements etc
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