Report No. 43187 Pakistan Infrastructure Implementation Capacity Assessment (PIICA) Authorized Disclosure Discussion Paper Series: Technical Note 3 Public FOREIGN STAKEHOLDERS' PERCEPTION SURVEY Authorizede November 2007 Disclosur Public Aized H. Mir, Amer Z. Durrani, Dr. Ijaz Gilani, Ermeena Malik Authorized Disclosure South Asia Sustainable Public Development Unit (SASSD) Document of the World Bank FOREIGN STAKEHOLDERS' PERCEPTION SURVEY November 2007 South Asia Sustainable Development Unit (SASSD) Document of the World Bank Cover art credit: Mr. Kamal Hayat, CEO PPAF The discussion paper series were prepared as a part of the Pakistan Infrastructure Implementation Capacity Assessment (PIICA) study and comprise of the following technical notes. Technical Note 1: Development of Construction Industry ­A Literature Review Technical Note 2: Local Stakeholders' Perception Survey Technical Note 3: Foreign Stakeholders' Perception Survey Technical Note 4: Business Environment and Cost of Doing Business Technical Note 5: Purchase Price Review in the Infrastructure Industry Technical Note 6: A Review of Allocations and Expenditures in the Public Sector Technical Note 7: Demand ­ Supply Gap Analysis Technical Note 8: International Case Studies ­ UAE, China and Malaysia Technical Note 9: Local Case Studies Technical Note 10: Response to International and Local Bids Technical Note 11: Focus Group Discussions i Discussion Papers are published to communicate the results of the World Bank's work to the development community with the least possible delay. The typescript manuscript of this paper therefore has not been prepared in accordance with the procedures appropriate to formally edited texts. Some sources cited in the paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed herein do not necessarily reflect the views of the International Bank for Reconstruction and Development / The World Bank and its affiliated organizers, or those of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. ii ACKNOWLEDGEMENTS Acknowledgements are due to the World Bank core team comprising Amer Zafar Durrani (Task Team Leader), Aized H. Mir (Co Task Team Leader), Hasan Afzal Zaidi, Dr. Zafar Raja, Uzma Sadaf, Hiam Abbas, Huma Waheed, Ermeena Malik, Abid Abrar Hussain, Mehreen Tanvir, Nazifa Sheikh and Shaukat Javed. The WB Consultants: M/s Engineering Associates [Sohail Abidi, Ahsan Siddiqi, S. M. Zakir (Economist), Abdul Majeed (Economist), Mr. Z. M. Malik, Mr. S. Bukhari, Mr. O. Mansoor (Coordinator)] for their valuable inputs, Dr. Ijaz Gilani, Fatima Idrees, Shmyalla Jawad and other team members of M/s Gallup Pakistan for conducting the Perceptions Survey and above all, the Stakeholders for providing their invaluable feedback. Asif Faiz, Cesar Augusto Querio, Fabio Galli, Giovanni Casartelli, Fang Xu, John Carter Scales, Richard Scurfield, Shahzad Sharjeel, Usman Qamar and Uzma Sadaf, are thanked for their extensive review of the PIICA report which is based on the technical notes. Mazhar Malik's extensive inputs on tackling Human Resource issues along with a detailed review of the report are greatly appreciated. Unjela Siddiqi (M/s Media Solutions) and Huma Ajam for providing editorial support. iii GOVERNMENT FISCAL YEAR July 1 ­ June 30 CURRENCY EQUIVALENTS Currency Unit = Pakistan Rupee (PKR) US$ 1 = PKR60.70 (February 6, 2007) ABBREVIATIONS AND ACRONYMS AASHTO American Association of State Highway GIKU Ghulam Ishaq Khan University of Science and Transportation Officials & Technology ACI Airports Council International GoP Government of Pakistan ADB Asian Development Bank GoS Government of Sindh ADP Annual Development Program GoB Government of Balochistan AIT Asian Institute of Technology (Bangkok, HR Human Resource Thailand) APCCA All Pakistan Construction & Contractors HRDF Human Resources Development Fund Association BCA Building and Construction Authority ICB International Competitive Bidding CAA Civil Aviation Authority ICT Information and Communications Technology CAK Contractors Association in Korea IFC International Finance Corporation CAPECO The Peruvian Chamber of Construction ILO International Labor Organization CBR Central Board of Revenue IPC Interim Payment Certificate CDA Capital Development Authority JXB Jebel Ali International Airport CICA Confederation of International Contractors' KPT Karachi Port Trust Association CIDB Construction Industry Development Board KWSB Karachi Water and Sewerage Board CIJC Construction Industry Joint Committee L/C Letter of Credit CITC Construction Industry Training Center LCB Local Competitive Bidding CITI Construction Industry Training Institute LUMS Lahore University of Management Sciences COTI Construction Official Training Institute MBA Master of Business Administration CRS Contractors' Registry System MCA Monopoly Control Authority CWTC Construction Workers Training Center MIT Massachusetts Institute of Technology DBS Development Bank of Singapore MOC Ministry of Construction (Korea) DELFT Delft University of Technology, Holland MTDF Medium Term Development Framework DEWA Dubai Electricity and Water Authority NAB National Accountability Bureau DFCs Development Finance Companies NEPRA National Electric Power Regulatory Authority DIB Dubai Islamic Bank NESPAK National Engineering Services Pakistan (Pvt.) Ltd. DIFC Dubai International Financial Center NHA National Highway Authority DLC Dubai Logistics City NIT Notice Inviting Tender DURL Dubai Rail Link NLC National Logistic Cell EDR Engineering Development Board NPRP National Procurement Reforms Program ENR Engineering News Record NWFP North-West Frontier Province FBR Federal Board of Revenue OGRA Oil & Gas Regulatory Authority FBS Federal Bureau of Statistics P&D Planning and Development FIA Federal Investigation Agency PC-1 Planning Commission's Performa 1 FIDIC International Federation of Consulting PEC Pakistan Engineering Council Engineers FWO Frontier Works Organization PERT/CPM Project Evaluation Review Technique/Critical Path Method PIDs Provincial Irrigation Departments SOP Security of Payment iv PKR Pakistan Rupee SPO Special Purpose Organization PPP Purchase Power Parity SSGC Sui Southern Gas Company PPRA Public Procurement Regulatory Authority TEVTA Technical Education and Vocational Training Authority PSDP Public Sector Development Program ToR Terms of Reference PTA Pakistan Telecommunication Authority UAE United Arab Emirates RFP Request for Proposal USAID United States Agency for International Development RTA Road & Transport Authority (Dubai) WAPDA Water and Power Development Authority SECP Security and Exchange Commission of WB World Bank Pakistan SNGPL Sui Northern Gas Pipelines Limited Vice President: Praful C. Patel Country Director: Yusupha B. Crookes Sector Director: Constance A. Bernard Sector Manager: Guang Z. Chen Task Team Leader: Amer Z. Durrani v Technical Note 3 FOREIGN STAKEHOLDERS' SURVEY Table of Contents OBJECTIVE.................................................................................................................................. 1 METHODOLOGY........................................................................................................................ 1 SUMMARY FINDINGS ............................................................................................................... 1 SAMPLE RESPONSE..................................................................................................................................... 1 ATTRIBUTES DEFINING "WORST" AND "BEST" BUSINESS ENVIRONMENT COUNTRIES .............................. 2 KEY ISSUES IDENTIFIED IN CHALLENGING BUSINESS ENVIRONMENTS....................................................... 2 KEY ATTRIBUTES DEFINING PERCEPTIONS ABOUT PAKISTAN.................................................................... 4 FACTORS THAT WOULD ATTRACT FOREIGN FIRMS TO PAKISTAN............................................................... 4 ANNEXURE I: FOREIGN STAKEHOLDERS' RESPONSE ................................................. 6 Figures Figure 1: Challenging Vs Best Countries - Key Issues Identified...........................................................3 Figure 2: Perceptions about Pakistan's Business Environment - Key Issues........................................5 Box Box 1: A Respondent's Comment............................................................................................4 vi OBJECTIVE There are a significant number of well known international consultants and contractors working in the region. However, their interest in Pakistan has remained limited. The literature review and especially the country specific assessments and reports also indicated that the capacity of local construction industry may be limited due to a wide variety of reasons.1 Therefore, a survey of foreign stakeholders was planned as part of the Pakistan Infrastructure Implementation Capacity Assessment (PIICA). Its objective was to obtain insight on the perceptions of international contractors and consultants and their level of interest in pursuing business in Pakistan. The following were the key issues explored: · For countries with the "worst business environment," what are the various issues that make the business environments in these countries "challenging?" Are such challenges acceptable? · For countries with the "best business environment," how are the same issues rated? · What would attract foreign stakeholders to pursue business in Pakistan and what deters them? · What are the general perceptions about the business environment in Pakistan? · If Pakistan is not on top of the list for exploring business, is it because there is plenty of work available elsewhere? METHODOLOGY A questionnaire was developed with the assistance of Gallup (Pakistan), as part of the web- based foreign stakeholders' survey. This questionnaire was hosted on the website of Engineering Associates, a leading consulting firm in Pakistan. A sample of 59 international contractors and consultants was selected from amongst the top 100 firms listed in the Engineering News Record (ENR). Firms that had previous work experience in Pakistan were also included in the sample. A total of 26 consulting and 33 construction firms were contacted over telephone to introduce the objectives of the World Bank (WB) survey, solicit interest and encourage response. Individual personalized e-mails with website access information were then sent and follow up telephone calls were also made. SUMMARY FINDINGS Sample Response Despite making best efforts to elicit a response through several e-mails and follow-up telephone calls, the response to the survey was poor. Out of the 59 firms contacted, only 5 responded of which 4 were consulting firms and 1 was a contractor. Because of the poor 1Refer Technical note 1 "Development of the Construction Industry ­ A literature review" 1 response, a statistical analysis was not possible, however a compilation of the responses received does provide some valuable insight. The low response itself is indicative of a lack of interest in Pakistan by foreign consultants and contractors. The top line results are shown in Annexure I. Attributes Defining "Worst" and "Best" Business Environment Countries The respondent companies had a collective work experience in 33 countries out of 38 countries in the region. The "Worst (or most challenging) Business Environment" countries identified by four respondents were India (4), Vietnam (3), Thailand (2), Pakistan (2), and China, Bangladesh, Indonesia, Philippines and Saudi Arabia (1 respondent each). The "Best Business Environment" countries identified by five respondents were Qatar, Bahrain, Oman (Gulf countries-3 respondents), and Hong Kong, Singapore, Australia, Korea, China, Laos, Vietnam, Thailand, Iran, Yemen and Pakistan (1 respondent each). Twenty key issues related to business environment were explored. Figure 1 shows the comparative weighted average score for each issue in the "most challenging" and in the "best" countries. Key Issues Identified in Challenging Business Environments The sub-set of "serious problems" that define and differentiate "challenging business environment" countries are: · Executing agencies lack professional planning · Executing agencies lack proper execution and implementation skills · Regulatory framework discourages interest from international contractors and consultants · There are 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 countries' · Political instability · Practice of awarding contracts on the basis of the lowest-cost bid · Lack of transparency in procurement and contract administration · Negative image of these countries The weighted average score2 for all attributes which define issues in "challenging" countries was 3.8 and for "good" business environment countries 2.1. In the case of "good business environment" countries, all issues were rated as being minor/very minor or with no problem. 2Score on a scale of 1 to 5, where 1 is "problem does not exist" and 5 "a very serious problem" 2 Figure 1: "Challenging vs Best" Countries - Key Issues Identified 1.8 1.8 ageer 1.8 1.4 Av 2.4 ed 2.6 1.8 ighteW" 2.4 1.8 1.8 2.2 2.4 ries 2.4 2.8 ountCt 2.6 2.2 esB" 2.0 2.2 2.2 1.8 2.5 eragevA 2.8 3.5 3.8 ed 3.8 3.8 ighteW" 3.3 3.8 3.8 4.0 ries 3.5 4.3 ountC 4.5 4.8 3.8 4.3 3.8 4.3 hallengingC" 4.0 3.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Scale: "Very Serious Problem" = 5, "Problem doesn't exist" = 1 Non availability of construction material Non availability of construction equipment Lack of quality human resources Negative image of these countries Lack of adequate management capacity of client agencies Lack of transparency in procurement and contract administration The average size/value of contracts in these countries doesn't appeal to foreign contractors/consultants The client's practice to award contracts based on low bids discourages foreign contractors/consultants in these countries Political instability makes these countries high risk countries The law and order situation makes these countries high risk countries Political interference discourages international joint venture partnerships Politically motivated interference restricts the entry of quality international contractors/consultants Corruption There are too many bureaucratic procedures involved in conducting business Cost of doing business is high due to government regulations Regulatory framework discourages interest from international contractors and consultants Government trade policy does not support or facilitate the entrance of international construction/consulting companies Executing agencies lack proper execution and implementation skills Executing agencies lack professional planning Executing Government institutions are Weak 3 Key Attributes Defining Perceptions about Pakistan Perceptions about Pakistan on the same "20 key business environment issues" were also obtained. The Box 1: A Respondent's Comment results are shown in Figure 2. The sub-set of fourteen key "We were induced into coming into attributes defining the country's perception, all of which Pakistan by one government and then with each change in are demand-side related attributes are: government the manner in which our project was treated also changed. The government however · Overall negative image of the country not only unlawfully terminated the · Lack of adequate management capacity of client project but also robbed us of our agencies investment by expropriating our · Lack of transparency in procurement and contract assets as well as our contractual administration rights in violation of all ethical and legal principles under international · Practice of awarding contracts based on the law. In the final analysis, we would lowest-bid discourages foreign contractors/ not consider investing in Pakistan consultants from participating in the bidding nor would we advise anyone else to process do likewise. Our experience has · Political instability increases the risk factor proved that Pakistani authorities do · Law and order situation makes it a high risk not conduct themselves in country accordance with law and principles · Corruption of fair administration and consider themselves not bound by any · There are too many bureaucratic procedures international obligation the state involved in conducting business may have undertaken." -sent via e- · Cost of doing business is high due to existing mail from a respondent who government regulations declined to participate in the survey. · Regulatory framework procedures discourage international contractors consultants · Government trade policy does not support/facilitate entrance of international construction/consulting firms into the Pakistani market · Executing agencies lack proper execution and implementation skills · Executing institutions lack professional planning · Executing government institutions are weak Despite the very small survey sample, results indicate that demand-side factors related to client institutional capacity, policies, regulations, processes and the negative image of the country are perceived as barriers by foreign stakeholders for doing business in Pakistan. Factors that would Attract Foreign Firms to Pakistan The majority of firms said that they would be interested if "conditions and financial returns justify," adding that "working for a donor organization would give a certain measure of governance to the project implementation" also "only if security and business confidence improves." However, all five respondents agreed with the statement that Pakistan is not on top of the list as "there was plenty of work available elsewhere." The following responses were received when foreign firms were asked to comment on what were the factors that would attract them to seek work in Pakistan; · Improved law & order situation 4 · More mega-sized projects · Reduction in cost of doing business Figure 2: Perceptions About Pakistan's Business Environment - Key Issues 2.8 2.8 reocsg 2.8 3.8 av 3.6 ed 4.0 eight 3.4 -w 4.0 uesssI 4.4 4.4 Key 3.0 of 3.4 ions 4.0 ept 4.4 Perc- 3.6 antsi 3.6 3.6 Pak 4.0 3.6 3.6 1.0 1.5 2.0 Scale:"Very Serious Problem"=5, "This Problem 3.5 2.5 3.0 Doesn't Exist"=14.0 4.5 5.0 Non availability of construction material Non availability of construction equipment Lack of quality human resources Negative image of this country Lack of adequate management capacity of client agencies Lack of transparency in procurement and contract administration The average size/value of contracts in this country doesn't appeal to foreign contractors and consultants The client's practice to award contracts based on low bids discourages foreign contractors/ consultants Political instability makes it a high risk country The law and order situation makes it a high risk country Political interference discourages international joint venture partnerships Politically motivated interference restricts the entry of quality international contractors/consultants Corruption There are too many bureaucratic procedures involved in conducting business Cost of doing business is high due to government regulations Regulatory framework discourages interest from international contractors and consultants Government trade policy does not support/facilitate entrance of international construction/consulting companies Executing agencies lack proper execution and implementation skills Executing agencies lack professional planning Executing Government institutions are Weak 5 Annexure I: Foreign Stakeholders' Response Web-based Questionnaire for International Contractors/Consultants ASSESSMENT OF CAPACITY FOR IMPLEMENTATION OF LARGE INFRASTRUCTURE PROJECTS IN PAKISTAN Submitted to The World Bank, Islamabad by April 28, 2006 COPING WITH EXPANSION Sample Size = 5* *Consulting Firms = 4 Construction Firms = 1 6 YOU ARE A MAJOR STAKEHOLDER IN THE GLOBAL CONSTRUCTION BUSINESS, YOUR OPINION COUNTS! Please send us your opinion. It would take approximately 10 minutes of your time. 1. In which of the following countries is your firm currently providing services: (please select all applicable countries). NOTE: The figures in brackets are the number of responses received South Asia/Asia 37 Ghana (2) 1 India (5) 38 Morocco (1) 2 Pakistan (4) 3 Sri Lanka (2) 4 Nepal (1) 5 Afghanistan (0) 6 Bhutan (1) 7 Kazakhstan (1) 8 Turkmenistan (1) 9 Uzbekistan (0) 10 Kyrgyzstan (1) 11 Azerbaijan (1) East Asia 12 Malaysia (2) 13 Indonesia (3) 14 Thailand (4) 15 Philippines (2) 16 Singapore (3) 17 Vietnam (4) 18 China (4) Middle East 19 Saudi Arabia (3) 20 Kuwait (3) 21 Qatar (5) 22 Oman (2) 23 Bahrain (3) 24 Jordan (2) 25 Yemen (1) 26 United Arab Emirates (3) 27 Iran (3) Africa 30 Egypt (3) 31 Nigeria (0) 32 Sudan (3) 33 Somalia (0) 34 Kenya (2) 35 Algeria (0) 36 Ethiopia (3) 7 2. For the countries that your firm works in, which five countries have the worst "Business Environment": a. India, Thailand, Indonesia, Vietnam, China (respondent 1) b. India, Thailand (respondents 2) c. Vietnam, Bangladesh, India, Philippines, Pakistan (respondents 3) d. Pakistan, Saudi Arabia, India, Vietnam (respondents 4) e. No response (respondents 5) 2 (A) Let us call these "Challenging" countries. Based on your experience, how serious would you say are the following issues in these "Challenging" countries (numbers in brackets are the number of responses received): Very Very This Statements Serious Serious Minor minor problem Don't problem problem Problemproblem doesn't Know exist 1 Executing government institutions are weak 5 (1) 4 3 (3) 2 1 6 (1) 2 Executing agencies lack professional planning 5 (1) 4 (2) 3 (1) 2 1 6 (1) 3 Executing agencies lack proper execution and implementation skills 5 (2) 4 (1) 3 (1) 2 1 6 (1) Government trade policy does not support or 4 facilitate the entrance of international construction 5 (2) 4 3 (1) 2 (1) 1 6 (1) and consulting companies into the local market 5 Regulatory framework discourages interest from international contractors and consultants 5 (1) 4 (3) 3 2 1 6 (1) 6 Cost of doing business is high due to government regulations 5 (1) 4 (1) 3 (2) 2 1 6 (1) 7 There are too many bureaucratic procedures involved in conducting business 5 (3) 4 (1) 3 (0) 2 1 6 (1) 8 Corruption 5 (2) 4 (2) 3 (0) 2 1 6 (1) 9 Politically motivated interference restricts the entry of quality international contractors/consultants 5 (2) 4 (1) 3 (1) 2 1 6 (1) 10 Political interference discourages international joint venture partnerships 5 (0) 4 (2) 3 (2) 2 1 6 (1) 11 The law and order situation makes these countries high risk countries 5 (1) 4 (2) 3 (1) 2 1 6 (1) 12 Political instability makes these countries high risk countries 5 (1) 4 (1) 3 (2) 2 1 6 (1) The client's practice to award contracts based on 13 low bids discourages foreign contractors and 5 (1) 4 (2) 3 (0) 2 (1) 1 6 (1) consultants from bidding in these countries The average size/value of contracts in these 14 countries doesn't appeal to foreign contractors and 5 (1) 4 3 (2) 2 (1) 1 6 (1) consultants 15 Lack of transparency in procurement and contract administration 5 (1) 4 (2) 3 2 (1) 1 (0) 6 (1) 16 Lack of adequate management capacity of client agencies 5 (1) 4 (1) 3 (2) 2 (0) 1 6 (1) 17 Negative image of these countries 5 (1) 4 (1) 3 (2) 2 1 6 (1) 18 Lack of quality human resources 5 4 (2) 3 (2) 2 (0) 1 6 (1) 8 19 Non availability of construction equipment 5 4 (1) 3 (2) 2 (0) 1 (1) 6 (1) 20 Non availability of construction material 5 4 (1) 3 (1) 2 (1) 1 (1) 6 (1) 3. Do you believe that doing business in these countries is a challenge but an acceptable one? Yes 1 (4) No 2 (1) 4 . For the countries that your firm works in, which five countries have the best "Business Environment": a. Hong Kong, Singapore, Australia, Korea. (Response of respondent 1) b. Qatar, Vietnam. (Response of respondents 2) c. Oman, Qatar, Bahrain. (Response of respondents 3) d. Gulf countries, Lao, Thailand, China. (Response of respondents 4) e. Pakistan, Yemen, Iran (Response of respondents 5) 4 (A). Based on your experience, how would you rate the following as a problem in these "Good Business Environment" countries? Very Very This Statements Serious Serious Minor minor problem Don't Problem problem Problem problem doesn't Know exist 1 Executing Government institutions are weak 5 (0) 4 (0) 3 (1) 2 (2) 1 (2) 6 (0) 2 Executing agencies lack professional planning 5 4 (0) 3 (2) 2 (2) 1 (1) 6 3 Executing agencies lack proper execution and implementation skills 5 4 3 (2) 2 (2) 1 (1) 6 Government trade policy does not support or 4 facilitate the entrance of international construction and companies into the local 5 4 3 (1) 2 (3) 1 (1) 6 market 5 Regulatory framework discourages interest from international contractors and consultants 5 4 (0) 3 (2) 2 (2) 1 (1) 6 6 Cost of doing business is high due to government regulations 5 (0) 4 (0) 3 (3) 2 (2) 1 6 7 There are too many bureaucratic procedures involved in conducting business 5 (0) 4 (0) 3 (4) 2 (1) 1 6 8 Corruption 5 4 (0) 3 (2) 2 (3) 1 6 Politically motivated interference restricts the 9 entry of quality international contractors/consultants 5 4 3 (3) 2 (1) 1 (1) 6 Political interference discourages international 10 joint venture partnerships 5 4 3 (2) 2 (2) 1 (1) 6 11 The law and order situation makes these countries high risk countries 5 4 3 (0) 2 (4) 1 (1) 6 Political instability makes these countries high 12 risk countries 5 4 3 (0) 2 (4) 1 (1) 6 The client's practice to award contracts based 13 on low bids discourages foreign contractors and consultants from bidding in these countries 5 4 3 (2) 2 (3) 1 6 9 The average size/value of contracts in these 14 countries doesn't appeal to foreign contractors and consultants 5 4 3 (0) 2 (4) 1 (1) 6 Lack of transparency in procurement and 15 contract administration 5 (0) 4 (1) 3 (1) 2 (3) 1 6 Lack of adequate management capacity of 16 client agencies 5 (0) 4 3 (2) 2 (3) 1 6 17 Negative image of these countries 5 (0) 4 3 2 (2) 1 (3) 6 18 Lack of quality human resources 5 (0) 4 (0) 3 (0) 2 (4) 1 (1) 6 19 Non availability of construction equipment 5 (0) 4 (0) 3 (0) 2 (4) 1 (1) 6 20 Non availability of construction material 5 (0) 4 (0) 3 (0) 2 (4) 1 (1) 6 5. Do you believe that doing business in these countries is not a challenge? Yes 1 (4) No 2 (1) 6. If you have never worked in Pakistan, would you consider working in that country? Yes 1 (go to 6b) (4) No 2 (1) 6a. If `NO': What are the top five reasons you would not pursue work in Pakistan? 1. Have worked in Pakistan. 2. 3. 6b. What would attract you to take up work in Pakistan? 1. Improved law & order, more mega-sized projects, reduced cost of doing Business (1) 2. There is a great need for transport infrastructure and telecommunication projects (2) 3. The market needs improved/better infrastructure (3) 4. Common religion, friendly relations with neighboring countries, sharing resources (5) 7. If you have previously worked in Pakistan, are you interested in obtaining more work there? Yes 1 (5) No 2 (0) 7(a) Please explain the reasons behind your answer. 1. If conditions and financial returns justify (1) 2. The market for consulting services is great. (2) 3. Working for donor organization gives a certain measure of governance to the project implementation (3) 4. Yes, but only If security and business confidence improves (4) 5.We have working experience, know the resources, have a branch office and are qualified and 10 known as a high grade contractor (5) 8. Whether you have worked in Pakistan or not, please tell us your perceptions (if any) about doing business in that country. How serious would you rate the following as a problem in doing business in Pakistan: Statements Very Serious Minor Very This Don't Serious problem Problem minor problem Know Problem problem doesn't exist 1 Executing government institutions are weak 5 (0) 4 (3) 3 (2) 2 (0) 1 (0) 6 (0) 2 Executing agencies lack professional planning 5 (0) 4 (3) 3 (2) 2 1 6 3 Executing agencies lack proper execution and 5 (1) 4 (3) 3 (1) 2 1 6 implementation skills 4 Government trade policy does not support or 5 4 (3) 3 (2) 2 1 6 facilitate the entrance of international construction and consulting companies into the local market 5 Regulatory framework discourages interest 5 4 (3) 3 (2) 2 1 6 from international contractors and consultants 6 Cost of doing business is high due to 5 4 (3) 3 (2) 2 1 6 government regulations 7 There are too many bureaucratic procedures 5 (2) 4 (3) 3 2 1 6 involved in conducting business 8 Corruption 5 (2) 4 (2) 3 (0) 2 (1) 1 6 9 Politically motivated interference restricts the 5 (1) 4 (1) 3 (2) 2 (1) 1 6 entry of quality international contractors/consultants 10 Political interference discourages international 5 (1) 4 (0) 3 (2) 2 (2) 1 6 joint venture partnerships 11 The law and order situation makes it a high risk 5 (4) 4 (0) 3 (0) 2 (1) 1 6 country 12 Political instability makes it a high risk country 5 (3) 4 (1) 3 (1) 2 (1) 1 6 13 The client's practice to award contracts based 5 (2) 4 (2) 3 2 (1) 1 6 on low bids discourages foreign contractors and consultants from bidding in this country 14 The average size/value of contracts in this 5 (1) 4 (1) 3 (2) 2 (1) 1 6 country doesn't appeal to foreign contractors and consultants 15 Lack of transparency in procurement and 5 (2) 4 (2) 3 2 (1) 1 6 contract administration 16 Lack of adequate management capacity of 5 (1) 4 (1) 3 (3) 2 1 6 client agencies 17 Negative image of this country 5 (2) 4 (2) 3 2 1 (1) 6 18 Lack of quality human resources 5 4 (1) 3 (3) 2 1 (1) 6 19 Non availability of construction equipment 5 4 (1) 3 (2) 2 (2) 1 6 20 Non availability of construction material 5 4 (1) 3 (2) 2 (2) 1 6 9. Would you say that Pakistan is not on the top of the list because there is plenty of work elsewhere? Yes 1 (5) No 2 (0) 11 Respondent's Information 10. Organization name: ___________________________________________________________ 11. Address: ___________________________________________________________________ 12. Organizational setup: Partnership Pvt. Ltd. 2 Public Ltd. 1 Government owned Other (specify): Employee owned (1)/Foundation (1) 13. Average annual turnover from overseas business in $USD (past 5 years) 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 Thank you for your valuable time! 12 Amer Zafar Durrani, Aized H. Mir, Hasan Afzal Zaidi, Dr. Zafar Raja, Uzma Sadaf, Hiam Abbas, Huma Waheed, Ermeena Malik, Abid Abrar Hussain, Mehreen Tanvir, Nazifa Sheikh, Shaukat Javed, Sohail Abidi, Ahsan Siddiqi, Salman Ahmed, S. M. Zakir, Abdul Majeed, Z. M. Malik, S. Bukhari, O. Mansoor, Unjela Siddiqi, Huma Ajam, Dr. Ijaz Gilani, Fatima Idrees, Shmyalla Jawad, Khalid Khan and all Stakeholders