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PepsiCo in search of level-playing field with $1bln investment promise

“We support the new government’s commitment to enhancing the ease of doing business in Pakistan,” Mike Spanos, PepsiCo’s chief executive officer for Asia, Middle East and North Africa (Amena) said in an interview.

By Mehtab Haider
December 09, 2018

ISLAMABAD: Pakistan will have to ensure a level-playing field to promote investment in the country, PepsiCo’s top official said.

“We support the new government’s commitment to enhancing the ease of doing business in Pakistan,” Mike Spanos, PepsiCo’s chief executive officer for Asia, Middle East and North Africa (Amena) said in an interview.

“We are confident that in collaboration with the new leadership of Pakistan, we will be able to make new investments under a business friendly environment.”

The global food and beverage company last month committed to invest one billion dollars in the country over the next five years.

Spanos said sudden changes in regulatory or tax policy could possibly hamper business plans as well as fresh investments in the country. Tax rates should be made competitive for the tax compliant businesses operating in Pakistan as the current tax rates in the country are comparatively higher as compared to other countries.

The company’s chief executive, however, seemed optimistic that the government would facilitate new investment of the company.

“As multinational businesses adhere(ing) to strict internal policies as well as global and national food and safety standards, harmonisation of laws and regulations is also a very important component for investors,” he added,

PepsiCo has been part of the business community in the country for more than 50 years.

The PepsiCo system, including snacks business and franchised bottling partners and distributors, brings more than 60,000 direct and indirect employment opportunities in the country. Together, the system has invested more than $800 million in the last five years.

The company works with 160 Pakistani growers to purchase only locally-grown potatoes and corn for its products such as Lays and Kurkure. This supports an estimated 4,000 jobs, while providing critical support to rural economies and empowering farmers with critical training on sustainable farming practices.

Spanos extended an invitation to the Prime Minister Imran Khan to inaugurate PepsiCo’s new snacks manufacturing facility in Multan early next year. The facility represents an investment of $66 million and is expected to create more than 1,500 direct and indirect employment opportunities for Pakistani citizens.

“Pakistan is an important market for PepsiCo Amena,” Spanos said. “It is a country with a young and growing population. We strive to be a development partner with Pakistan.”

PepsiCo Foundation, the philanthropic arm of PepsiCo, is about to launch two new programs to be funded by a one million dollar grant.

PepsiCo is launching a three-year program in partnership with WaterAid to improve access to clean drinking water, sanitation and hygiene for the urban poor in Lahore, Karachi and Islamabad. These schemes will include hand pumps, new reverse osmosis plants, as well as rehabilitation of existing facilities. “This partnership aims to benefit approximately 150,000 direct and indirect beneficiaries.”

PepsiCo launched a youth skills development program in Pakistan in association with Amal Academy. Its objective is to develop key skills and mindsets in university students to enable them to realise their potential and launch into meaningful careers. The curriculum for this program was largely designed at Stanford University.

The main objective of the initiative is to increase employment prospects for 1,000 young adults spread across the country in 2019, the pilot year, with plans to scale the program for multiple years, which may impact close to 50,000 young adults.