MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC, N-30D, 1998-06-25

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC
N-30D, 1998-06-25

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<PAGE>

DEAN WITTER PACIFIC GROWTH FUND INC. TWO WORLD TRADE CENTER, NEW
LETTER TO THE SHAREHOLDERS APRIL 30, 1998 YORK, NEW YORK 10048

DEAR SHAREHOLDER:

The six-month period ended April 30, 1998, continued to be difficult and
extremely volatile for the currency and equity markets of the Pacific Basin and
for Dean Witter Pacific Growth Fund. Northeast Asia, which was largely unscathed
during the financial turmoil in Southeast Asia last summer, came under severe
pressure in late 1997 when the Taiwanese authorities permitted a small
depreciation of their currency. This led to significant renewed attack on the
U.S. dollar peg in Hong Kong, pushing equity prices there significantly lower.
This decline was mirrored elsewhere in the region but was particularly acute in
South Korea where the situation led to heavy selling of the South Korean won and
a sharp decline in the South Korean stock market. In the end, South Korean
authorities abandoned their defense of the currency and became the third country
in the region, after Thailand and Indonesia, to seek formal financial assistance
from the International Monetary Fund (IMF). On December 3, the IMF granted a
record $57 billion rescue package to facilitate the rollover of South Korea's
foreign debts and to restore confidence in the currency.

At the start of 1998, currencies and equity markets remained under significant
pressure, as a result of renewed economic concern in Indonesia. The publication
of the draft budget for 1998 to 1999, which was based on completely unrealistic
assumptions, raised serious doubts among investors about Indonesia's commitment
to the conditions of the IMF package. These concerns prompted capital to flow
out of Indonesia, pushing the currency to record lows against the U.S. dollar
and triggering a further round of depreciation in other regional currencies. The
spectacular free fall of the Indonesian rupiah also led to the dramatic collapse
of Peregrine, a Hong Kong investment bank, which had overextended itself with a
loan to an Indonesian transportation company. The bankruptcy of Peregrine sent
shockwaves through the region, further damaging the already fragile sentiment.

<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1998, CONTINUED

However, beginning in mid-January, regional markets and currencies rallied
strongly following a series of positive developments. The most significant of
these was the successful rollover of South Korea's short-term currency debts
into longer maturities at better-than-expected interest rates. Then Indonesia
negotiated a revised agreement with the IMF, which was based upon more realistic
budget assumptions, and introduced a temporary voluntary suspension of
repayments on foreign currency private sector debt. This effective moratorium
removed some of the short-term downward pressure on the rupiah and moved the
debt crisis on to the next stage of official rescheduling talks with the banks.
In addition, in Thailand, significant progress toward financial restructuring
was made while a new bankruptcy law was introduced to facilitate liquidations.
Similar developments occurred across the region convincing investors that the
authorities had finally moved beyond denial and that a more rational policy
response to the crisis was beginning to emerge.

In the absence of additional foreign capital inflows, however, the strong equity
rally in February quickly turned to profit taking beginning in mid-March.
Indonesia once again emerged as the trouble spot despite confirmation of a third
version of the reform package, which secured further financial aid from the IMF.
Indeed, it was this latest reform package, which led to a removal of the subsidy
on petrol and diesel prices that, in turn, sparked large student demonstrations
and heavy looting. In May, President Suharto was forced to announce his
resignation, ending a 32-year period of leadership. He has been succeeded by
B.J. Habibie, the Vice President, who has promised early parliamentary elections
and an acceleration of economic and political reform.

The Japanese market started 1998 strongly, with investors confident that the
authorities in Tokyo may finally be coming to grips with the country's economic
problems and that decisive action would be taken to reignite the economy.
However, this optimism steadily dissipated amid renewed concerns over the health
of the financial sector and in spite of the announcement of further spending
measures by the government. The yen has remained under steady downward pressure
and this, together with the lack of economic recovery, continues to undermine
investment sentiment in the whole Pacific Basin.

PERFORMANCE AND PORTFOLIO STRATEGY

For the six months ended April 30, 1998, Dean Witter Pacific Growth Fund Class B
shares posted a total return of -12.25 percent versus -9.34 percent for the MSCI
Pacific Free Index, -12.90 percent for the MSCI All Country Far East Free Index
excluding Japan and -9.11 percent for the Lipper Pacific Region Funds Average.
For the same period, the Fund's Class A, C and D shares had

2
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1998, CONTINUED

total returns of -11.93 percent, -12.11 percent and -11.79 percent,
respectively. Performance of the Fund's four share classes varies because of
differing expenses. The MSCI Pacific Free Index measures the performance of
markets in the Pacific Rim and is dominated by the performance of Japanese
equities because of the relative size of the Japanese market, which currently
makes up more than 70 percent of the Index. It is important to note that the
Fund's exposure to Japan is modest relative to this Index. The MSCI All Country
Far East Free Index excluding Japan measures the performance of the smaller
stock markets of the Pacific Basin, commonly referred to as the Tiger economies,
and contains no exposure to the markets of Japan and Australia. The Lipper
Pacific Region Funds Average tracks the performance of funds that invest in
equity securities whose primary trading markets or operations are concentrated
in the Pacific Basin or a single country within this region.

We continue to place heavy emphasis on well-managed companies with strong
balance sheets and good earnings visibility (a number of utility companies and
infrastructure providers fall into this category). The Fund also has a bias
toward electronics stocks and other export-related / U.S. dollar-earning stocks.
In addition, we have accumulated positions in some more cyclical industries,
where significant value is beginning to emerge. For example, some Singapore and
Hong Kong banks appear to have overdiscounted the prospects for rising
non-performing loans, while some real-estate stocks in these two markets have
fallen to levels that may more than reflect likely further falls in physical
property prices.

We remain enthusiastic about the long-term prospects for Greater China, although
that sub-region certainly has a number of significant challenges to confront.
The Fund's exposure to Greater China, including Taiwan and direct China exposure
is 10 percent. The Fund's largest single country position remains Hong Kong at
29 percent of net assets.

OUTLOOK

The outlook for the region remains challenging. South Korea, Thailand and
Indonesia are all expected to record substantially negative GDP growth for 1998,
while other countries in the region will see their economic growth forecast
reduced significantly. Further downward revision remains possible given weak
domestic consumption and lackluster export performance. Inflation will also
escalate in countries such as Malaysia, Thailand, South Korea and Indonesia,
whose currencies have substantially depreciated.

3
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1998, CONTINUED

In China, growing concerns over the slowing domestic economy could put pressure
on the Chinese authorities to devalue their currency (the renminbi) in order to
maintain sufficient economic growth to keep unemployment under control. However,
we believe that such a devaluation is unlikely since it would almost certainly
lead to another wave of Asian currency turmoil and further increase the already
significant trade surplus with the United States, thus jeopardizing their entry
into the World Trade Organization. Moreover, a devaluation of the renminbi would
renew speculation regarding the sustainability of the Hong Kong dollar peg,
which China has interest in maintaining. We expect that China will use monetary
and fiscal measures, rather than currency manipulation, to reaccelerate the
economy, which should ultimately be positive for Hong Kong.

In addition, corporate profits across the region will come under significant
pressure in 1998. Substantially negative earnings growth, exacerbated by foreign
exchange translation losses, is now expected in a number of countries.

Nevertheless, some important steps have been taken that will be positive for the
region going forward. For instance, we are encouraged by the successful
recapitalization of two of the largest banks in Thailand, which represents the
first step toward reinjecting liquidity into the economy. In Malaysia, the
authorities have indicated that they are willing to consider allowing foreigners
to take a majority stake in telecommunication companies, albeit perhaps only
temporarily. The Malaysian government has also announced that they will soon be
creating an Asset Management Company that will remove non-performing loans from
the banking sector, allowing the banks to recommence profitable lending. The
process of bank recapitalization is also a key focus of policy in Korea and
CommerzeBank of Germany has recently negotiated a 25 percent stake in Korea
Exchange Bank.

It is encouraging that, while equity markets have lost most of their early-1998
gains, regional currencies have so far largely retained much of their advances.
This has been aided by significant improvements in the balance of trade flows
and current accounts, right across the region. We continue to view currency
stability as important to any sustainable rally in asset prices, since it will
be the fall in interest rates, which currency stability will ultimately
engender, that will eventually lead to a recovery. This stabilization has, so
far, been possible despite the weakness of the Japanese yen and concerns about
the Chinese renminbi. However, these issues remain a key focus for the markets
and may yet undermine regional currencies. Additionally, the longer that
interest rates remain high, the greater the economic damage. This may require
some easing of policy, even at the expense of some currency weakness, if the
economic pain becomes too severe.

4
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 1998, CONTINUED

The last six months proved to be another frustrating period for investors in the
Pacific region and for shareholders of Dean Witter Pacific Growth Fund. The
short-term outlook remains difficult and no immediate sharp recovery is likely.
However, we strongly believe that, for long-term investors, the Pacific Basin
presents significant opportunities and that the investment prospects for Dean
Witter Pacific Growth Fund are sound.

We appreciate your ongoing support of Dean Witter Pacific Growth Fund and look
forward to the opportunity to continue to serve your investment needs.

Sincerely,

[SIGNATURE]
CHARLES A. FIUMEFREDDO
CHAIRMAN OF THE BOARD

* * *

In May 1998, Dean Witter Pacific Growth Fund's sub-adviser, Morgan Grenfell
Investment Services Limited, advised the Board of Directors of the Fund and
InterCapital of its resignation as sub-adviser, effective at the close of
business on October 31, 1998. On June 2, 1998, the Board of Directors
unanimously recommended that a new sub-advisory agreement with Morgan Stanley
Asset Management Inc. ("MSAM"), an affiliate of InterCapital, be submitted to
shareholders for approval at a special meeting expected to be held in August
1998. A letter enclosing a prospectus supplement, which contains complete
details, has been mailed to you.

5
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS, BONDS, RIGHTS
AND WARRANTS (94.0%)
AUSTRALIA (4.6%)
BANKING
1,187,700 Westpac Banking Corp., Ltd...................................................... $ 7,943,088
------------
COMMERCIAL SERVICES
100,000 Mayne Nickless Ltd.............................................................. 537,750
------------
FOOD, BEVERAGE, TOBACCO, & HOUSEHOLD PRODUCTS
1,200,000 Foster's Brewing Group Ltd...................................................... 2,602,395
5,131,000 Goodman Fielder Ltd............................................................. 7,929,109
------------
10,531,504
------------
MULTI-INDUSTRY
1,050,000 Pacific Dunlop Ltd.............................................................. 1,936,213
------------
OIL - EXPLORATION & PRODUCTION
1,100,000 Oil Search Ltd.................................................................. 2,414,097
------------
RETAIL STORES
502,200 Coles Myer Ltd.................................................................. 2,419,502
------------
TOTAL AUSTRALIA................................................................. 25,782,154
------------
CHINA (1.3%)
INVESTMENT COMPANIES
100,000 Investment Co. of China* ***.................................................... 494,000
------------
METALS & MINING
6,000,000 Yanzhou Coal Mining Co. Ltd.*................................................... 1,568,146
------------
MISCELLANEOUS
3,920,000 China Resources Beijing Land.................................................... 2,074,342
------------
UTILITIES - ELECTRIC
2,950,000 Huaneng Power International, Inc.*.............................................. 1,656,234
4,000,000 Zhejiang Southeast Electric Power Co., Ltd. (B Shares).......................... 1,376,000
------------
3,032,234
------------

TOTAL CHINA..................................................................... 7,168,722
------------
HONG KONG (29.4%)
BANKING
750,000 Dah Sing Financial Group........................................................ 1,829,504
1,575,838 Dao Heng Bank Group Ltd......................................................... 4,657,549
1,150,000 Hang Seng Bank Ltd.............................................................. 9,684,757
244,400 HSBC Holdings PLC............................................................... 6,971,141
------------
23,142,951
------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONGLOMERATES
1,200,000 Citic Pacific Ltd............................................................... $ 3,686,113
4,142,000 Hutchison Whampoa, Ltd.......................................................... 25,606,840
769,000 Swire Pacific Ltd. (Class A).................................................... 3,841,030
------------
33,133,983
------------
ELECTRONIC & ELECTRICAL EQUIPMENT
1,500,000 ASM Pacific Technology Ltd...................................................... 1,161,590
4,000,000 Elec & Eltek International Holdings Ltd......................................... 1,135,777
1,125,000 Johnson Electric Holdings Ltd................................................... 3,811,468
------------
6,108,835
------------
ENGINEERING & CONSTRUCTION
1,381,000 Road King Infrastructure Ltd.*.................................................. 1,283,325
------------
HOTELS/MOTELS
1,036,000 CDL Hotels International, Ltd................................................... 317,566
------------
MISCELLANEOUS
716,000 New World Infrastructure Ltd.*.................................................. 1,538,642
------------
REAL ESTATE
3,250,000 Cheung Kong (Holdings) Ltd...................................................... 21,602,349
700,000 China Resources Enterprise Ltd.................................................. 1,201,600
3,853,000 New World Development Co., Ltd.................................................. 10,965,236
2,600,000 Sun Hung Kai Properties Ltd..................................................... 15,436,242
3,300,000 Wharf (Holdings) Ltd............................................................ 5,281,363
------------
54,486,790
------------
RETAIL - FOOD CHAINS
2,250,000 Dairy Farm International Holdings Ltd........................................... 2,880,000
------------
TELECOMMUNICATIONS
2,968,000 China Telecom Ltd.*............................................................. 5,631,079
9,200,000 Hong Kong Telecommunications Ltd................................................ 17,217,346
------------
22,848,425
------------
UTILITIES
2,375,000 CLP Holdings Ltd................................................................ 11,402,943
3,000,000 Hong Kong & China Gas Co., Ltd.................................................. 4,084,925
1,855,000 Hong Kong Electric Holdings Ltd................................................. 5,698,116
------------
21,185,984
------------

TOTAL HONG KONG................................................................. 166,926,501
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INDIA (1.6%)
ALUMINUM
91,000 Hindalco Industries Ltd. (GDR)*................................................. $ 1,751,750
------------
BANKS
162,000 State Bank of India (GDR)*...................................................... 3,078,000
------------
TELECOMMUNICATIONS
134,900 Mahanagar Telephone Nigam Ltd. (GDR)*........................................... 2,175,262
------------
TEXTILES
85,000 Reliance Industries Ltd. (GDR).................................................. 775,625
------------
TOBACCO
65,000 ITC Ltd. (GDR).................................................................. 1,495,000
------------
TOTAL INDIA..................................................................... 9,275,637
------------
INDONESIA (1.3%)
AUTO RELATED
11,404,500 PT Astra International Inc...................................................... 2,259,383
------------
BUILDING MATERIALS
11,598 PT Mulia Industrindo*........................................................... 875
------------
FOREST PRODUCTS, PAPER & PACKING
310,300 PT Pabrik Kertas Tjiwi Kimia (Warrants due 07/15/02)*........................... 38,095
------------
INVESTMENT COMPANIES
2,500,000 Peregrine Indonesia Fund Ltd.**................................................. 422,000
------------
OIL & GAS EXPLORATION
200,600 Gulf Indonesia Resources Ltd.*.................................................. 3,084,225
------------
PLANTATION
100 PT London Sumatra Indonesia..................................................... 25
------------
TELECOMMUNICATIONS
231,200 PT Telekomunikasi Indonesia..................................................... 1,849,600
------------
TOTAL INDONESIA................................................................. 7,654,203
------------
JAPAN (18.6%)
APPAREL
36,000 World Co., Ltd.................................................................. 834,688
------------
AUTO TRUCKS & PARTS
39,000 NGK Spark Plug Co., Ltd......................................................... 305,330
54,000 Yasunaga Corp................................................................... 341,463
------------
646,793
------------

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
AUTOMOTIVE
75,000 Honda Motor Co.................................................................. $ 2,710,027
79,000 Toyota Motor Corp............................................................... 2,051,716
------------
4,761,743
------------
BANKING
184,000 Asahi Bank, Ltd................................................................. 706,414
209,000 Bank of Tokyo-Mitsubishi Ltd.................................................... 2,578,674
167,000 Mitsui Trust & Banking Co., Ltd................................................. 360,802
134,000 Sanwa Bank, Ltd................................................................. 1,180,217
133,000 Sumitomo Bank................................................................... 1,251,506
140,000 Sumitomo Trust & Banking........................................................ 729,298
------------
6,806,911
------------
BEVERAGES
31,000 Itoen, Ltd...................................................................... 903,117
------------
BUILDING & CONSTRUCTION
51,000 Kaneshita Construction.......................................................... 264,905
------------
BUILDING MATERIALS
77,000 Ibiden Co., Ltd................................................................. 1,211,457
238,000 Sanwa Shutter................................................................... 1,101,852
Y 63,000 K Sanwa Shutter Corp. 0.90% due 03/31/06 (Conv.).................................. 424,458
------------
2,737,767
------------
BUSINESS SERVICES
158,000 Ricoh Co., Ltd.................................................................. 1,630,669
28,000 Secom Co........................................................................ 1,644,083
------------
3,274,752
------------
CHEMICALS
605,000 Mitsubishi Chemical Corp........................................................ 1,093,044
356,000 Nippon Zeon Co., Ltd............................................................ 830,774
89,000 Shin-Etsu Chemical Co........................................................... 1,728,546
155,000 Sumitomo Bakelite Co., Ltd...................................................... 1,071,138
------------
4,723,502
------------
CHEMICALS - SPECIALTY
70,000 Sanyo Chemical Industries, Ltd.................................................. 583,860
------------
COMMERCIAL SERVICES
29,000 Nichii Gakkan Co................................................................ 938,723
------------
COMPUTER SOFTWARE & SERVICES
53,000 Hitachi Software Engineering Co., Ltd........................................... 1,452,273
29,000 Meitec Corp..................................................................... 949,639
14,000 Nintendo Co., Ltd............................................................... 1,279,434
50 NTT Data Corp................................................................... 2,152,966
------------
5,834,312
------------
COMPUTERS
7,000 Nidec Corp...................................................................... 374,134
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRONIC & ELECTRICAL EQUIPMENT
86,000 Aiwa Co., Ltd................................................................... $ 2,557,212
Y 99,000 K Canon, Inc. 1.20% due 12/20/05 (Conv.).......................................... 1,559,824
Y 49,000 K Canon, Inc. 1.30% due 12/19/08 (Conv.).......................................... 769,083
151,000 Hitachi, Ltd.................................................................... 1,078,734
49,000 Mitsui High-Tec................................................................. 1,161,924
29,600 Sony Corp....................................................................... 2,453,297
116,000 Sumitomo Electric Industries.................................................... 1,377,085
14,000 TDK Corp........................................................................ 1,102,379
------------
12,059,538
------------
ELECTRONICS
17,000 Rohm Co., Ltd................................................................... 1,911,924
------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
22,800 Shinko Electric Industries Co., Ltd............................................. 990,334
39,000 Tokyo Seimitsu Co., Ltd......................................................... 1,142,051
------------
2,132,385
------------
ENGINEERING & CONSTRUCTION
312,000 Kajima Corp..................................................................... 904,246
------------
ENTERTAINMENT
33,700 Sony Music Entertainment Inc.................................................... 1,314,107
------------
FINANCIAL SERVICES
14,740 Nichiei Co., Ltd. (Kyoto)....................................................... 1,142,894
132,000 Nomura Securities Co., Ltd...................................................... 1,604,788
19,500 Orix Corp....................................................................... 1,343,157
------------
4,090,839
------------
FOOD, BEVERAGE, TOBACCO, & HOUSEHOLD PRODUCTS
127,000 Nippon Meat Packers, Inc........................................................ 1,720,867
------------
HAND TOOLS
39,000 Disco Corp...................................................................... 1,115,628
------------
HEALTH & PERSONAL CARE
70,000 Sankyo Co., Ltd................................................................. 1,728,395
------------
INDUSTRIALS
Y 26,000 K Nippon Densan Corp. 1.00% 09/30/03 (Conv.)...................................... 369,332
------------
INSURANCE
212,000 Tokio Marine & Fire Insurance Co................................................ 2,298,103
------------
MACHINERY
133,000 Daifuku Co., Ltd................................................................ 523,630
74,000 Fuji Machine Manufacturing Co., Ltd............................................. 2,105,691
12,100 Keyence Corp.................................................................... 1,623,171
91,000 Kurita Water Industries Ltd..................................................... 998,095

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
91,000 Minebea Co., Ltd................................................................ $ 1,013,851
Y 21,000 K Minebea Co., Ltd. 0.80% due 03/31/03 (Conv.).................................... 276,649
165,000 OSG Corp........................................................................ 968,835
30,700 Shima Seiki Manufacturing, Ltd.................................................. 1,028,418
------------
8,538,340
------------
MANUFACTURING
54,000 Nichiha Corp.................................................................... 443,902
------------
MERCHANDISING
38,800 Shimamura Co., Ltd.............................................................. 958,025
------------
METALS & MINING
786,000 Nippon Steel Co................................................................. 1,260,298
39,000 Sumitomo Special Metals......................................................... 870,483
------------
2,130,781
------------
METALS - NON-FERROUS
200,000 Fujikura Ltd.................................................................... 1,026,799
384,000 Mitsui Mining & Smelting........................................................ 1,589,883
------------
2,616,682
------------
OFFICE EQUIPMENT
5,900 Riso Kagaku..................................................................... 306,903
------------
PAPER PRODUCTS
209,000 Tomoegawa Paper Co. Ltd......................................................... 621,462
------------
PHARMACEUTICALS
61,000 Eisai Co., Ltd.................................................................. 872,478
88,000 Takeda Chemical Industries...................................................... 2,504,065
------------
3,376,543
------------
REAL ESTATE
45,700 Chubu Sekiwa Real Estate, Ltd................................................... 216,734
20,000 Heiwa Real Estate Co., Ltd...................................................... 150,557
Y 190,000 K Heiwa Real Estate Co., Ltd. 2.50% due 03/29/02 (Conv.).......................... 572,117
105,000 Mitsubishi Estate Co., Ltd...................................................... 1,011,743
154,000 Mitsui Fudosan Co., Ltd......................................................... 1,400,422
------------
3,351,573
------------
RETAIL
19,700 Otsuka Kagu Ltd................................................................. 897,207
156,000 Tokyo Style Co., Ltd............................................................ 1,409,214
------------
2,306,421
------------
RETAIL - DEPARTMENT STORES
156,000 Hankyu Department Stores........................................................ 967,660
------------
RETAIL - GENERAL MERCHANDISE
24,500 Circle K Japan Co., Ltd......................................................... 1,005,157
28,000 Seven-Eleven Japan Co., Ltd..................................................... 1,865,402
------------
2,870,559
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
RETAIL - SPECIALTY
23,000 Aderans Co., Ltd................................................................ $ 541,930
------------
STEEL
866,000 Sumitomo Metal Industries....................................................... 1,427,687
123,000 Yamato Kogyo Co., Ltd........................................................... 912,963
------------
2,340,650
------------
TELECOMMUNICATIONS
315 DDI Corp........................................................................ 794,377
277 Nippon Telegraph & Telephone Corp............................................... 2,418,850
------------
3,213,227
------------
TELECOMMUNICATIONS EQUIPMENT
108,000 Nippon Comsys Corp.............................................................. 1,263,415
------------
TEXTILES
520,000 Mitsubishi Rayon Co., Ltd....................................................... 1,409,214
384,000 Nitto Boseki Co., Ltd........................................................... 881,662
------------
2,290,876
------------
TRANSPORTATION
260,000 Tokyu Corp...................................................................... 1,031,466
------------
UTILITIES - ELECTRIC
69,000 Tokyo Electric Power Co......................................................... 1,316,734
------------
UTILITIES - GAS
434,000 Tokyo Gas Co., Ltd.............................................................. 976,859
------------
WHOLESALE & INTERNATIONAL TRADE
76,000 Mitsui & Co..................................................................... 469,136
------------
WHOLESALE DISTRIBUTOR
17,100 Fujimi, Inc.*................................................................... 683,537
43,000 Misumi Corp..................................................................... 757,453
------------
1,440,990
------------
TOTAL JAPAN..................................................................... 105,704,705
------------
MALAYSIA (8.1%)
AUTOMOTIVE
450,000 Edaran Otomobil Nasional Berhad................................................. 773,154
1,065,000 Oriental Holdings Berhad........................................................ 2,230,067
------------
3,003,221
------------
BANKING
1,299,000 Commerce Asset-Holding Berhad................................................... 976,429
950,000 Malayan Banking Berhad.......................................................... 2,805,369
3,000,399 Public Bank Berhad.............................................................. 1,433,748
------------
5,215,546
------------
BUILDING & CONSTRUCTION
750,000 Gamuda Berhad................................................................... 849,664
1,300,000 Lingkaran Trans Kota Holdings Berhad*........................................... 1,221,476

<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
1,750 Sungei Way Holdings Berhad (Warrants due 06/29/99)*............................. $ 106
------------
2,071,246
------------
ELECTRONICS
475,000 Malaysian Pacific Industries Berhad............................................. 1,364,430
------------
INSURANCE
1,305,000 Malaysian Assurance Alliance Berhad............................................. 2,277,181
------------
LEISURE
1,238,000 Berjaya Sports Toto Berhad...................................................... 2,941,289
4,161,000 Metroplex Berhad................................................................ 1,150,558
1,018,000 Resorts World Berhad............................................................ 1,967,678
------------
6,059,525
------------
MULTI-INDUSTRY
1,250,000 Hong Leong Industries Berhad.................................................... 1,328,859
------------
PLANTATION
1,300,000 Highlands & Lowlands Berhad..................................................... 1,458,792
3,894,000 IOI Corporated Berhad........................................................... 2,927,034
750,000 Kuala Lumpur Kepong Berhad...................................................... 1,741,611
------------
6,127,437
------------
PUBLISHING
752,000 Star Publications............................................................... 1,069,960
------------
TELECOMMUNICATIONS
2,325,000 Telekom Malaysia Berhad......................................................... 6,990,604
------------
TOBACCO
600,000 RJ Reynolds Berhad.............................................................. 958,389
------------
UTILITIES
2,875,000 Tenaga Nasional Berhad.......................................................... 5,750,000
------------
UTILITIES - ELECTRIC
853,000 Malakoff Berhad................................................................. 2,244,134
------------
WATER
1,800,000 Puncak Niaga Holdings Berhad*................................................... 1,613,960
------------

TOTAL MALAYSIA.................................................................. 46,074,492
------------

PHILIPPINES (2.0%)
BUILDING MATERIALS
46,260 Bacnotan Consolidated Industries................................................ 69,131
------------
CONGLOMERATES
2,400,000 First Philippine Holdings Corp. (B Shares)...................................... 1,763,387
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
REAL ESTATE
5,288,400 Ayala Land, Inc. (B Shares)..................................................... $ 2,074,528
------------
TELECOMMUNICATIONS
184,800 Philippine Long Distance Telephone Co. (ADR).................................... 4,989,600
------------
UTILITIES
892,963 Manila Electric Co. (B Shares).................................................. 2,535,437
------------

TOTAL PHILIPPINES............................................................... 11,432,083
------------

SINGAPORE (11.0%)
BANKING
512,500 Development Bank of Singapore, Ltd.............................................. 3,400,474
1,256,200 Overseas Chinese Banking Corp., Ltd............................................. 6,628,291
1,210,000 Overseas Union Bank, Ltd........................................................ 4,587,678
1,011,000 United Overseas Bank, Ltd....................................................... 4,791,469
------------
19,407,912
------------
CONGLOMERATES
765,750 Keppel Corp., Ltd.*............................................................. 2,061,356
1,830,000 Natsteel Ltd.................................................................... 2,405,308
420,000 Sembawang Corp., Ltd............................................................ 838,673
------------
5,305,337
------------
ELECTRONIC & ELECTRICAL EQUIPMENT
450,000 Elec & Eltek International Co., Ltd............................................. 2,610,000
1,408,000 Venture Manufacturing Ltd....................................................... 5,115,956
------------
7,725,956
------------
ELECTRONICS
300,000 GP Batteries International Ltd.................................................. 830,332
------------
ENGINEERING
3,371,243 Singapore Technologies Engineering Ltd.*........................................ 2,897,245
------------
PUBLISHING
413,424 Singapore Press Holdings Ltd.................................................... 4,571,829
------------
REAL ESTATE
950,400 City Developments, Ltd.......................................................... 4,113,896
1,277,000 DBS Land Ltd.................................................................... 1,928,613
1,000,000 Keppel Land Ltd................................................................. 1,187,994
------------
7,230,503
------------
SHIPBUILDING
390,000 Jurong Shipyard Ltd............................................................. 1,946,919
560,000 Keppel Fels Ltd................................................................. 1,649,036
------------
3,595,955
------------

TOTAL SINGAPORE................................................................. 62,100,361
------------

SOUTH KOREA (4.1%)
COMMUNICATIONS - EQUIPMENT/MANUFACTURERS
1 LG Information & Communication Ltd.............................................. 30
------------
ELECTRONIC & ELECTRICAL EQUIPMENT
50,000 Samsung Display Devices Co...................................................... 2,490,637
9,769 Samsung Display Devices Co. (Rights)............................................ 169,768
131,118 Samsung Electronics Co.......................................................... 7,267,964
10,431 Samsung Electronics Co. (GDR) (Rights).......................................... 201,588
------------
10,129,957
------------
INVESTMENT COMPANIES
234,000 Atlantis Korean Smaller Companies*.............................................. 1,200,420
65,000 Clemente Korea Emerging Growth Fund*............................................ 220,350
------------
1,420,770
------------
SHIPBUILDING
360,000 Daewoo Heavy Industries......................................................... 1,782,472
------------
STEEL & IRON
133,685 Pohang Iron & Steel Co., Ltd.................................................... 7,239,218
------------
UTILITIES
207,000 Korea Electric Power Corp....................................................... 2,822,023
------------

TOTAL SOUTH KOREA............................................................... 23,394,470
------------

TAIWAN (8.7%)
BANKS
705,000 China Development Corp.......................................................... 1,913,785
846,400 China Trust Commercial Bank*.................................................... 993,499
372,960 International Commercial Bank of China.......................................... 542,981
737,880 United World Chinese Commercial Bank*........................................... 1,018,306
------------
4,468,571
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED
<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
BUILDING & CONSTRUCTION
802,420 Cathay Construction Corp........................................................ $ 744,739
------------
BUILDING MATERIALS
307,590 Asia Cement Corp. (GDR)......................................................... 3,268,144
------------
CHEMICALS
56,000 Formosa Chemical & Fibre Corp................................................... 57,749
1,013,700 Formosa Plastic Corp............................................................ 1,737,156
$ 2,925 K Nan Ya Plastics Corp. 1.75% due 07/09/01 (Conv.)................................ 3,393,000
------------
5,187,905
------------
COMPUTERS
52,750 Acer Inc.*...................................................................... 87,997
183,000 Acer Inc. (GDR)*................................................................ 1,619,550
$ 1,900 K Acer Peripherals Inc. 1.25% due 11/27/06 (Conv.)................................ 2,147,000
$ 2,100 K Compal Electronics 1.00% due 11/21/03 (Conv.)................................... 4,515,000
780,000 Microtek International, Inc.*................................................... 1,111,920
$ 1,000 K Yageo Corp. 1.25% due 07/24/03 (Conv.).......................................... 1,620,000
------------
11,101,467
------------
ELECTRONICS - SEMICONDUCTORS/COMPONENTS
541,800 Siliconware Precision Industries Co.*........................................... 1,314,650
$ 230 K Siliconware Precision Industries Co. 0.50% due 07/21/04 (Conv.)................. 232,300
1,212,500 Taiwan Semiconductor Manufacturing Co.*......................................... 5,240,560
40,000 Taiwan Semiconductor Manufacturing Co. Ltd. (ADR)*.............................. 970,000
$ 1,800 K United Microelectronics Corp. - 144A ** 0.25% due 05/16/04 (Conv.).............. 1,998,000
------------
9,755,510
------------
INVESTMENT COMPANIES
600 Taipei Fund*.................................................................... 6,079,200
------------
LIFE INSURANCE
842,350 Cathay Life Insurance Co., Ltd.................................................. 3,372,466
------------
MANUFACTURING
1,032,000 President Enterprises Corp.*.................................................... 1,083,021
------------

TOTAL TAIWAN.................................................................... 49,424,156
------------

THAILAND (3.3%)
BANKING
1,226,100 Bangkok Bank PCL................................................................ 3,097,180
1,755,000 Thai Farmers Bank PCL........................................................... 4,044,727
------------
7,141,907
------------
OIL RELATED
8,400 PTT Exploration & Production PCL................................................ 89,250
------------
TELECOMMUNICATIONS
460,000 Advanced Info Service PCL....................................................... 3,114,583
------------
TELEVISION
410,000 BEC World PCL................................................................... 2,178,125
------------
TRANSPORTATION
3,814,000 Bangkok Expressway PCL*......................................................... 3,029,349
312,000 Regional Container Line Co., Ltd................................................ 365,625
------------
3,394,974
------------
UTILITIES - ELECTRIC
2,200,000 Cogeneration PCL*............................................................... 1,317,708
800,200 Electricity Generating PCL*..................................................... 1,562,890
------------
2,880,598
------------

TOTAL THAILAND.................................................................. 18,799,437
------------

TOTAL COMMON STOCKS, BONDS, RIGHTS AND WARRANTS
(IDENTIFIED COST $639,845,023).................................................. 533,736,921
------------
</TABLE>

<TABLE>
<CAPTION>
CURRENCY
AMOUNT IN
THOUSANDS
- ----------------
<C> <S> <C>
PURCHASED PUT OPTION ON FOREIGN CURRENCY (0.6%)
Y 6,964,310 August 11, 1998/Yen 123.70 (IDENTIFIED COST $1,522,915)......................... 3,349,850
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
- ----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (a) (3.6%)
COMMERCIAL PAPER
FINANCE - DIVERSIFIED
$ 350 General Electric Capital Corp. 5.56% due 05/18/98............................... $ 349,089
------------
U.S. GOVERNMENT AGENCY
20,000 Federal Home Loan Mortgage Corp. 5.43% due 05/01/98............................. 20,000,000
------------

TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $20,349,089).................................................... 20,349,089
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $661,717,027)(B)......................................................... 98.2 % 557,435,860

CASH AND OTHER ASSETS IN EXCESS OF LIABILITIES............................................ 1.8 10,062,927
------ -------------

NET ASSETS................................................................................ 100.0 % $ 567,498,787
------ -------------
------ -------------
</TABLE>

- ---------------------

ADR American Depository Receipt.
GDR Global Depository Receipt.
GDS Global Depository Shares.
K In thousands.
* Non-income producing security.
** Resale is restricted to qualified institutional investors.
*** Partially paid shares. Resale is restricted to qualified institutional
investors.
(a) Securities were purchased on a discount basis. The interest rates shown
have been adjusted to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $29,948,082 and the
aggregate gross unrealized depreciation is $134,229,249, resulting in net
unrealized depreciation of $104,281,167.

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 1998

<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS TO IN DELIVERY APPRECIATION/
DELIVER EXCHANGE FOR DATE (DEPRECIATION)
- ----------------------------------------------------
<S> <C> <C> <C>
SGD 448,455 $ 281,428 05/04/98 ($1,956)
HKD 1,435,586 $ 185,309 05/04/98 24
MYR 1,130,645 $ 299,509 05/05/98 (4,020)
$ 1,452,883 Y 192,216,370 05/06/98 (5,906)
SGD 8,806,250 $ 4,591,012 07/13/98 (963,510)
--------------
Net unrealized depreciation... (97$5,368)
--------------
--------------
</TABLE>

CURRENCY ABBREVIATIONS:

<TABLE>
<S> <C>
HKD Hong Kong Dollar
Y Japanese Yen
MYR Malaysian Ringgit
SGD Singapore Dollar
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS APRIL 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Aluminum.......................................................................... $ 1,751,750 0.3 %
Apparel........................................................................... 834,688 0.1
Auto Related...................................................................... 2,259,382 0.4
Auto Trucks & Parts............................................................... 646,793 0.1
Automotive........................................................................ 7,764,964 1.4
Banking........................................................................... 69,658,316 12.3
Banks............................................................................. 7,546,571 1.3
Beverages......................................................................... 903,117 0.2
Building & Construction........................................................... 3,080,890 0.5
Building Materials................................................................ 6,075,917 1.1
Business Services................................................................. 3,274,752 0.6
Chemicals......................................................................... 9,911,407 1.7
Chemicals - Specialty............................................................. 583,860 0.1
Commercial Services............................................................... 1,476,473 0.3
Communications - Equipment/Manufacturers.......................................... 30 0.0
Computer Software & Services...................................................... 5,834,312 1.0
Computers......................................................................... 11,475,601 2.0
Conglomerates..................................................................... 40,202,706 7.1
Currency Options.................................................................. 3,349,850 0.6
Electronic & Electrical Equipment................................................. 36,024,285 6.3
Electronics....................................................................... 4,106,686 0.7
Electronics - Semiconductors/Components........................................... 11,887,895 2.1
Engineering....................................................................... 2,897,245 0.5
Engineering & Construction........................................................ 2,187,571 0.4
Entertainment..................................................................... 1,314,107 0.2
Finance - Diversified............................................................. 349,089 0.1
Financial Services................................................................ 4,090,839 0.7
Food, Beverage, Tobacco, & Household Products..................................... 12,252,371 2.2
Forest Products, Paper & Packing.................................................. 38,095 0.0
Hand Tools........................................................................ 1,115,628 0.2
Health & Personal Care............................................................ 1,728,395 0.3
Hotels/Motels..................................................................... 317,566 0.1
Industrials....................................................................... 369,332 0.1
Insurance......................................................................... 4,575,284 0.8
Investment Companies.............................................................. 8,415,970 1.5
Leisure........................................................................... 6,059,525 1.1
Life Insurance.................................................................... 3,372,466 0.6
Machinery......................................................................... 8,538,340 1.5
Manufacturing..................................................................... 1,526,923 0.3
Merchandising..................................................................... 958,025 0.2
Metals & Mining................................................................... 3,698,928 0.7
Metals - Non-Ferrous.............................................................. 2,616,682 0.5

<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Miscellaneous..................................................................... $ 3,612,984 0.6 %
Multi-Industry.................................................................... 3,265,072 0.6
Office Equipment.................................................................. 306,903 0.1
Oil & Gas Exploration............................................................. 3,084,225 0.5
Oil - Exploration & Production.................................................... 2,414,097 0.4
Oil Related....................................................................... 89,250 0.0
Paper Products.................................................................... 621,462 0.1
Pharmaceuticals................................................................... 3,376,543 0.6
Plantation........................................................................ 6,127,462 1.1
Publishing........................................................................ 5,641,789 1.0
Real Estate....................................................................... 67,143,394 11.8
Retail............................................................................ 2,306,421 0.4
Retail - Department Stores........................................................ 967,660 0.2
Retail - Food Chains.............................................................. 2,880,000 0.5
Retail - General Merchandise...................................................... 2,870,559 0.5
Retail - Specialty................................................................ 541,930 0.1
Retail Stores..................................................................... 2,419,502 0.4
Shipbuilding...................................................................... 5,378,427 0.9
Steel............................................................................. 2,340,650 0.4
Steel & Iron...................................................................... 9,882,351 1.7
Telecommunications................................................................ 45,181,302 8.0
Telecommunications Equipment...................................................... 1,263,415 0.2
Television........................................................................ 2,178,125 0.4
Textiles.......................................................................... 3,066,501 0.5
Tobacco........................................................................... 2,453,389 0.4
Transportation.................................................................... 13,794,149 2.4
U.S. Government Agency............................................................ 20,000,000 3.5
Utilities......................................................................... 32,293,444 5.7
Utilities - Electric.............................................................. 9,473,700 1.7
Utilities - Gas................................................................... 976,859 0.2
Utilities - Telecommunications.................................................... 2,887,583 0.5
Water............................................................................. 1,613,960 0.3
Wholesale & International Trade................................................... 469,136 0.1
Wholesale Distributor............................................................. 1,440,990 0.3
------------ ---
$557,435,860 98.2 %
------------ ---
------------ ---
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Common Stocks..................................................................... $513,730,600 90.5 %
Convertible Bonds................................................................. 19,596,763 3.4
Foreign Currency Put Options...................................................... 3,349,850 0.6
Rights & Warrants................................................................. 409,557 0.1
Short-Term Investments............................................................ 20,349,090 3.6
------------ ---
$557,435,860 98.2 %
------------ ---
------------ ---
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1998 (UNAUDITED)

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $661,717,027)............................................................. $ 557,435,860
Cash......................................................................................... 2,638,171
Receivable for:
Investments sold......................................................................... 7,954,856
Capital stock sold....................................................................... 5,220,768
Dividends................................................................................ 1,264,905
Prepaid expenses and other assets............................................................ 190,000
-------------
TOTAL ASSETS............................................................................ 574,704,560
-------------
LIABILITIES:
Unrealized depreciation on open forward foreign currency contracts........................... 975,368
Payable for:
Investments purchased.................................................................... 1,681,860
Compensated forward foreign currency contracts........................................... 1,500,543
Capital stock repurchased................................................................ 788,849
Investment management fee................................................................ 479,403
Plan of distribution fee................................................................. 476,465
Accrued expenses and other payables.......................................................... 1,303,285
-------------
TOTAL LIABILITIES....................................................................... 7,205,773
-------------
NET ASSETS.............................................................................. $ 567,498,787
-------------
-------------
COMPOSITION OF NET ASSETS:
Paid-in-capital.............................................................................. $ 993,129,825
Net unrealized depreciation.................................................................. (105,257,909)
Dividends in excess of net investment income................................................. (14,915,526)
Accumulated net realized loss................................................................ (305,457,603)
-------------
NET ASSETS.............................................................................. $ 567,498,787
-------------
-------------
CLASS A SHARES:
Net Assets................................................................................... $2,651,013
Shares Outstanding (500,000,000
AUTHORIZED, $.01 PAR VALUE)................................................................ 239,467
NET ASSET VALUE PER SHARE............................................................... $11.07
-------------
-------------
MAXIMUM OFFERING PRICE PER SHARE
(NET ASSET VALUE PLUS 5.54% OF
NET ASSET VALUE)....................................................................... $11.68
-------------
-------------
CLASS B SHARES:
Net Assets................................................................................... $ 562,030,970
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 50,758,692
NET ASSET VALUE PER SHARE............................................................... $11.07
-------------
-------------
CLASS C SHARES:
Net Assets................................................................................... $1,299,562
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 117,631
NET ASSET VALUE PER SHARE............................................................... $11.05
-------------
-------------
CLASS D SHARES:
Net Assets................................................................................... $1,517,242
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 136,975
NET ASSET VALUE PER SHARE............................................................... $11.08
-------------
-------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1998 (UNAUDITED)

<TABLE>
<S> <C>
NET INVESTMENT INCOME:

INCOME
Dividends (net of $230,066 foreign withholding tax)........................................... $ 7,208,017
Interest (net of $862 foreign withholding tax)................................................ 881,833
------------
TOTAL INCOME............................................................................. 8,089,850
------------
EXPENSES
Investment management fee..................................................................... 3,110,945
Plan of distribution fee (Class A shares)..................................................... 1,942
Plan of distribution fee (Class B shares)..................................................... 3,092,601
Plan of distribution fee (Class C shares)..................................................... 5,399
Transfer agent fees and expenses.............................................................. 1,321,600
Custodian fees................................................................................ 1,008,909
Shareholder reports and notices............................................................... 116,183
Registration fees............................................................................. 81,230
Professional fees............................................................................. 38,653
Directors' fees and expenses.................................................................. 7,592
Other......................................................................................... 18,182
------------
TOTAL EXPENSES........................................................................... 8,803,236
------------
NET INVESTMENT LOSS...................................................................... (713,386)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized loss on:
Investments............................................................................... (173,720,457)
Foreign exchange transactions............................................................. (4,918,811)
------------
NET LOSS................................................................................. (178,639,268)
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................................................... 97,955,412
Translation of forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies....................................................... (541,038)
------------
NET APPRECIATION......................................................................... 97,414,374
------------
NET LOSS................................................................................. (81,224,894)
------------
NET DECREASE.................................................................................. $(81,938,280)
------------
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
APRIL 30, ENDED
1998 OCTOBER 31, 1997*
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------

<CAPTION>
(UNAUDITED)
<S> <C> <C>

INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment income (loss).......................................... $ (713,386) $ 386,894
Net realized loss..................................................... (178,639,268) (81,003,250)
Net change in unrealized appreciation/depreciation.................... 97,414,374 (280,824,717)
------------- ---------------------

NET DECREASE..................................................... (81,938,280) (361,441,073)
------------- ---------------------

DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME
Class A shares........................................................ (18,402) --
Class B shares........................................................ (10,272,862) (25,258,274)
Class C shares........................................................ (13,025) --
Class D shares........................................................ (17,045) --
------------- ---------------------

TOTAL DIVIDENDS.................................................. (10,321,334) (25,258,274)
------------- ---------------------
Net decrease from capital stock transactions.......................... (85,933,169) (492,076,963)
------------- ---------------------

NET DECREASE..................................................... (178,192,783) (878,776,310)

NET ASSETS:
Beginning of period................................................... 745,691,570 1,624,467,880
------------- ---------------------

END OF PERIOD
(INCLUDING DIVIDENDS IN EXCESS OF NET INVESTMENT INCOME OF
$14,915,526 AND $3,880,806, RESPECTIVELY)......................... $ 567,498,787 $ 745,691,570
------------- ---------------------
------------- ---------------------
</TABLE>

- ---------------------

* Class A, Class C and Class D shares were issued July 28, 1997.

SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED)

1. ORGANIZATION AND ACCOUNTING POLICIES

Dean Witter Pacific Growth Fund Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified,
open-end management investment company. The Fund's investment objective is to
maximize capital appreciation of its investments. The Fund was incorporated in
Maryland on June 13, 1990 and commenced operations on November 30, 1990. On July
28, 1997, the Fund commenced offering three additional classes of shares, with
the then current shares designated as Class B shares.

The Fund offers Class A shares, Class B shares, Class C shares and Class D
shares. The four classes are substantially the same except that most Class A
shares are subject to a sales charge imposed at the time of purchase, some Class
A shares, and most Class B shares and Class C shares are subject to a contingent
deferred sales charge imposed on shares redeemed within one year, six years and
one year, respectively. Class D shares are not subject to a sales charge.
Additionally, Class A shares, Class B shares and Class C shares incur
distribution expenses.

The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect reported amounts and disclosures. Actual results could differ from those
estimates.

The following is a summary of significant accounting policies:

A. VALUATION OF INVESTMENTS -- (1) an equity security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Directors); (2) listed options are valued at the latest sale
price on the exchange on which they are listed unless no sales of such options
have taken place that day, in which case they are valued at the mean between
their latest bid and asked price; (3) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (4) when market
quotations are not readily available, including circumstances under which it is
determined by Dean Witter InterCapital Inc. (the "Investment Manager") or Morgan
Grenfell Investment Services Limited (the "Sub-Adviser") that sale and bid
prices are not reflective of a security's market value, portfolio securities are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Directors (valuation of

17
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

debt securities for which market quotations are not readily available may be
based upon current market prices of securities which are comparable in coupon,
rating and maturity or an appropriate matrix utilizing similar factors); and (5)
short-term debt securities having a maturity date of more than sixty days at the
time of purchase are valued on a mark-to-market basis until sixty days prior to
maturity and thereafter at amortized cost based on their value on the 61st day.
Short-term debt securities having a maturity date of sixty days or less at the
time of purchase are valued at amortized cost.

B. ACCOUNTING FOR INVESTMENTS -- Security transactions are accounted for on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on security transactions are determined by the identified cost method.
Dividend income and other distributions are recorded on the ex-dividend date
except for certain dividends from foreign securities which are recorded as soon
as the Fund is informed after the ex-dividend date. Discounts are accreted over
the life of the respective securities. Interest income is accrued daily.

C. MULTIPLE CLASS ALLOCATIONS -- Investment income, expenses (other than
distribution fees), and realized and unrealized gains and losses are allocated
to each class of shares based upon the relative net asset value on the date such
items are recognized. Distribution fees are charged directly to the respective
class.

D. OPTION ACCOUNTING PRINCIPLES -- When the Fund writes a call option, an amount
equal to the premium received is included in the Fund's Statement of Assets and
Liabilities as a liability which is subsequently marked-to-market to reflect the
current market value of the option written. If a written option either expires
or the Fund enters into a closing purchase transaction, the Fund realizes a gain
or loss without regard to any unrealized gain or loss on the underlying security
or currency and the liability related to such option is extinguished. If a
written call option is exercised, the Fund realizes a gain or loss from the sale
of the underlying security or currency and the proceeds from such sale are
increased by the premium originally received.

When the Fund purchases a call or put option, the premium paid is recorded as an
investment which is subsequently marked-to-market to reflect the current market
value. If a purchased option expires, the Fund will realize a loss to the extent
of the premium paid. If the Fund enters into a closing sale transaction, a gain
or loss is realized for the difference between the proceeds from the sale and
the

18
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

cost of the option. If a put option is exercised, the cost of the security or
currency sold upon exercise will be increased by the premium originally paid. If
a call option is exercised, the cost of the security purchased upon exercise
will be increased by the premium originally paid.

E. FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities, other assets and liabilities and forward foreign currency
contracts are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange gains/losses
included in realized and unrealized gain/loss are included in or are a reduction
of ordinary income for federal income tax purposes. The Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the changes in the market prices of the securities.

F. FORWARD FOREIGN CURRENCY CONTRACTS -- The Fund may enter into forward foreign
currency contracts which are valued daily at the appropriate exchange rates. The
resultant unrealized exchange gains and losses are included in the Statement of
Operations as unrealized gain/loss on foreign exchange transactions. The Fund
records realized gains or losses on delivery of the currency or at the time the
forward contract is extinguished (compensated) by entering into a closing
transaction prior to delivery.

G. FEDERAL INCOME TAX STATUS -- It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to its shareholders.
Accordingly, no federal income tax provision is required.

H. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- The Fund records dividends and
distributions to its shareholders on the record date. The amount of dividends
and distributions from net investment income and net realized capital gains are
determined in accordance with federal income tax regulations which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification. Dividends and distributions which
exceed net investment income and net realized capital gains for financial

19
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

reporting purposes but not for tax purposes are reported as dividends in excess
of net investment income or distributions in excess of net realized capital
gains. To the extent they exceed net investment income and net realized capital
gains for tax purposes, they are reported as distributions of paid-in-capital.

2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS

Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 1.0% to the portion of daily net assets not exceeding $1
billion; 0.95% to the portion of daily net assets exceeding $1 billion but not
exceeding $2 billion; and 0.90% to the portion of daily net assets in excess of
$2 billion.

Under the terms of the Agreement, in addition to managing the Fund's
investments, the Investment Manager maintains certain of the Fund's books and
records and furnishes, at its own expense, office space, facilities, equipment,
clerical, bookkeeping and certain legal services and pays the salaries of all
personnel, including officers of the Fund who are employees of the Investment
Manager. The Investment Manager also bears the cost of telephone services, heat,
light, power and other utilities provided to the Fund.

Under a Sub-Advisory Agreement between the Sub-Adviser and the Investment
Manager, the Sub-Adviser provides the Fund with investment advice and portfolio
management relating to the Fund's investments in securities, subject to the
overall supervision of the Investment Manager. As compensation for its services
provided pursuant to the Sub-Advisory Agreement, the Investment Manager pays the
Sub-Adviser monthly compensation equal to 40% of its monthly compensation.

3. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Dean Witter Distributors Inc. (the
"Distributor"), an affiliate of the Investment Manager. The Fund has adopted a
Plan of Distribution (the "Plan") pursuant to Rule 12b-1 under the Act. The Plan
provides that the Fund will pay the Distributor a fee which is accrued daily and
paid monthly at the following annual rates: (i) Class A - up to 0.25% of the
average daily net assets of Class A; (ii) Class B - 1.0% of the lesser of: (a)
the average daily aggregate gross sales of the Class B shares since the
inception of the Fund (not including reinvestment of dividend or capital gain
distributions) less the average daily aggregate net asset value of the Class B
shares redeemed since the Fund's inception upon which a contingent deferred
sales charge has been

20
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

imposed or waived; or (b) the average daily net assets of Class B; and (iii)
Class C - up to 1.0% of the average daily net assets of Class C. In the case of
Class A shares, amounts paid under the Plan are paid to the Distributor for
services provided. In the case of Class B and Class C shares, amounts paid under
the Plan are paid to the Distributor for services provided and the expenses
borne by it and others in the distribution of the shares of these Classes,
including the payment of commissions for sales of these Classes and incentive
compensation to, and expenses of, the account executives of Dean Witter Reynolds
Inc. ("DWR"), an affiliate of the Investment Manager and Distributor, and others
who engage in or support distribution of the shares or who service shareholder
accounts, including overhead and telephone expenses; printing and distribution
of prospectuses and reports used in connection with the offering of these shares
to other than current shareholders; and preparation, printing and distribution
of sales literature and advertising materials. In addition, the Distributor may
utilize fees paid pursuant to the Plan, in the case of Class B shares, to
compensate DWR and other selected broker-dealers for their opportunity costs in
advancing such amounts, which compensation would be in the form of a carrying
charge on any unreimbursed expenses.

In the case of Class B shares, provided that the Plan continues in effect, any
cumulative expenses incurred by the Distributor but not yet recovered may be
recovered through the payment of future distribution fees from the Fund pursuant
to the Plan and contingent deferred sales charges paid by investors upon
redemption of Class B shares. Although there is no legal obligation for the Fund
to pay expenses incurred in excess of payments made to the Distributor under the
Plan and the proceeds of contingent deferred sales charges paid by investors
upon redemption of shares, if for any reason the Plan is terminated, the
Trustees will consider at that time the manner in which to treat such expenses.
The Distributor has advised the Fund that such excess amounts, including
carrying charges, totaled $40,157,545 at April 30, 1998.

In the case of Class A shares and Class C shares, expenses incurred pursuant to
the Plan in any calendar year in excess of 0.25% or 1.0% of the average daily
net assets of Class A or Class C, respectively, will not be reimbursed by the
Fund through payments in any subsequent year, except that expenses representing
a gross sales credit to account executives may be reimbursed in the subsequent
calendar year. For the six months ended April 30, 1998, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.25% and
1.0%, respectively.

The Distributor has informed the Fund that for the six months ended April 30,
1998, it received contingent deferred sales charges from certain redemptions of
the Fund's Class B shares and Class C

21
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

shares of $1,057,699, and $3,944, respectively and received $23,122 in front-end
sales charges from sales of the Fund's Class A shares. The respective
shareholders pay such charges which are not an expense of the Fund.

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 1998 aggregated
$226,308,265 and $324,716,616, respectively.

For the six months ended April 30, 1998, the Fund incurred $3,477 in brokerage
commissions with affiliates of the Sub-Adviser for portfolio transactions
executed on behalf of the Fund.

For the six months ended April 30, 1998, the Fund incurred brokerage commissions
of $8,951 with Morgan Stanley & Co., Inc., an affiliate of the Investment
Manager, for portfolio transactions executed on behalf of the Fund. At April 30,
1998, the Fund's payable for investments purchased included unsettled trades
with Morgan Stanley & Co., Inc., of $192,748.

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager and
Distributor, is the Fund's transfer agent. At April 30, 1998, the Fund had
transfer agent fees and expenses payable of approximately $289,000.

The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Directors of the Fund who will have served as independent
Directors for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended April 30, 1998
included in Directors' fees and expenses in the Statement of Operations,
amounted to $1,918. At April 30, 1998, the Fund had an accrued pension liability
of $39,401 which is included in accrued expenses in the Statement of Assets and
Liabilities.

22
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

5. CAPITAL STOCK

Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED
APRIL 30, 1998 FOR THE YEAR
---------------------------- ENDED
OCTOBER 31, 1997*
(UNAUDITED) --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- ------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 206,285 $ 2,394,173 63,214 $ 998,769
Reinvestment of dividends........................................ 1,152 13,083 -- --
Redeemed......................................................... (16,364) (198,320) (14,820) (235,608)
----------- -------------- ----------- ------------
Net increase - Class A........................................... 191,073 2,208,936 48,394 763,161
----------- -------------- ----------- ------------

CLASS B SHARES
Sold............................................................. 19,667,769 226,782,835 28,630,560 521,923,627
Reinvestment of dividends........................................ 840,396 9,572,097 1,228,090 23,456,516
Redeemed......................................................... (27,740,910) (326,335,838) (57,878,288) (1,039,376,437)
----------- -------------- ----------- ------------
Net decrease - Class B........................................... (7,232,745) (89,980,906) (28,019,638) (493,996,294)
----------- -------------- ----------- ------------

CLASS C SHARES
Sold............................................................. 356,674 3,904,510 76,313 1,169,997
Reinvestment of dividends........................................ 1,046 11,869 -- --
Redeemed......................................................... (303,942) (3,559,600) (12,460) (171,011)
----------- -------------- ----------- ------------
Net increase - Class C........................................... 53,778 356,779 63,853 998,986
----------- -------------- ----------- ------------

CLASS D SHARES
Sold............................................................. 130,295 1,510,805 9,137 157,184
Reinvestment of dividends........................................ 222 2,523 -- --
Redeemed......................................................... (2,679) (31,306) -- --
----------- -------------- ----------- ------------
Net increase - Class D........................................... 127,838 1,482,022 9,137 157,184
----------- -------------- ----------- ------------
Net decrease in Fund............................................. (6,860,056) $ (85,933,169) (27,898,254) $(492,076,963)
----------- -------------- ----------- ------------
----------- -------------- ----------- ------------
</TABLE>

- ---------------------

* For Class A, C and D shares, for the period July 28, 1997 (issue date)
through October 31, 1997.

23
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 1998 (UNAUDITED) CONTINUED

6. FEDERAL INCOME TAX STATUS

At October 31, 1997, the Fund had an approximate net capital loss carryover of
$116,663,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through October 31 of the following
years:

<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
- -----------------------------------
2003 2004 2005
- --------- ----------- -----------
<S> <C> <C>
$ 3,193 $ 15,875 $ 97,595
- --------- ----------- -----------
- --------- ----------- -----------
</TABLE>

As of October 31, 1997, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies and
capital loss deferrals on wash sales.

7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS

The Fund may enter into forward foreign currency contracts ("forward contracts")
to facilitate settlement of foreign currency denominated portfolio transactions
or to manage foreign currency exposure associated with foreign currency
denominated securities.

Forward contracts involve elements of market risk in excess of the amounts
reflected in the Statement of Assets and Liabilities. The Fund bears the risk of
an unfavorable change in the foreign exchange rates underlying the forward
contracts. Risks may also arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.

At April 30, 1998, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.

At April 30, 1998, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's custodian.

8. SUBSEQUENT EVENT

In May 1998, the sub-adviser advised the Fund's Board of Directors and the
Investment Manager of its resignation as sub-adviser, effective at the close of
business on October 31, 1998. On June 2, the Board of Directors unanimously
recommended that a new sub-advisory agreement with Morgan Stanley Asset
Management Inc., an affiliate of the Investment Manager, be submitted to
shareholders for approval at a special meeting expected to be held in August
1998.

24
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS

Selected ratios and per share data for a share of capital stock outstanding
throughout each period:

<TABLE>
<CAPTION>
FOR THE
SIX
MONTHS
ENDED
APRIL 30, FOR THE YEAR ENDED OCTOBER 31
1998++ --------------------------------------------------------
(UNAUDITED) 1997* 1996 1995 1994 1993
- --------------------------------------------------------------------------------------

<S> <C> <C> <C> <C> <C> <C>
CLASS B SHARES

PER SHARE
OPERATING
PERFORMANCE:

Net asset value,
beginning of
period.......... $ 12.83 $ 18.89 $ 18.77 $ 21.60 $ 19.80 $ 12.69
---------- ---------- ---------- ---------- --------- ---------

Net investment
income (loss)... (0.01) 0.01 0.05 0.08 (0.10) (0.04)

Net realized and
unrealized gain
(loss).......... (1.56) (5.77) 0.50 (1.94) 2.22 7.15
---------- ---------- ---------- ---------- --------- ---------

Total from
investment
operations...... (1.57) (5.76) 0.55 (1.86) 2.12 7.11
---------- ---------- ---------- ---------- --------- ---------

Less dividends
and
distributions
from:
Net investment
income........ (0.19) (0.30) (0.43) -- -- --
Net realized
gain.......... -- -- -- (0.97) (0.32) --
---------- ---------- ---------- ---------- --------- ---------

Total dividends
and
distributions... (0.19) (0.30) (0.43) (0.97) (0.32) --
---------- ---------- ---------- ---------- --------- ---------

Net asset value,
end of period... $ 11.07 $ 12.83 $ 18.89 $ 18.77 $ 21.60 $ 19.80
---------- ---------- ---------- ---------- --------- ---------
---------- ---------- ---------- ---------- --------- ---------

TOTAL INVESTMENT
RETURN+.......... (12.25) (1) (31.01)% 3.00% (8.65)% 10.69% 56.13%

RATIOS TO AVERAGE
NET ASSETS:
Expenses......... 2.83%(2) 2.44% 2.39% 2.45% 2.41% 2.38%

Net investment
income (loss)... (0.23) (2) 0.03% 0.18% 0.35% (0.70)% (0.46)%

SUPPLEMENTAL DATA:
Net assets, end
of period, in
millions........ $562 $744 $1,624 $1,442 $1,571 $694

Portfolio
turnover rate... 38%(1) 42% 49% 50% 35% 30%

Average
commission rate
paid............ $0.0059 $0.0075 $0.0095 -- -- --
</TABLE>

- ---------------------

* Prior to July 28, 1997, the Fund issued one class of shares. All shares of
the Fund held prior to that date have been designated Class B shares.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.

SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE SIX JULY 28,1997*
MONTHS ENDED THROUGH
APRIL 30, 1998++ OCTOBER 31,
(UNAUDITED) 1997++
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
CLASS A SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 12.86 $ 19.39
------ ------
Net investment income................................................. 0.03 --
Net realized and unrealized loss...................................... (1.56) (6.53)
------ ------
Total from investment operations...................................... (1.53) (6.53)
------ ------
Less dividends from net investment income............................. (0.26) --
------ ------
Net asset value, end of period........................................ $ 11.07 12.86
------ ------
------ ------
TOTAL INVESTMENT RETURN+.............................................. (11.93)%(1) (33.68)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 2.05%(2) 1.92%(2)
Net investment income (loss).......................................... 0.48%(2) (0.03)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $2,651 $622
Portfolio turnover rate............................................... 38%(1) 42%
Average commission rate paid.......................................... $0.0059 $0.0075
</TABLE>

<TABLE>
<S> <C> <C>
CLASS C SHARES
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.................................. $ 12.83 $ 19.39
------ ------
Net investment loss................................................... (0.03) (0.04)
Net realized and unrealized loss...................................... (1.52) (6.52)
------ ------
Total from investment operations...................................... (1.55) (6.56)
------ ------
Less dividends from net investment income............................. (0.23) --
------ ------
Net asset value, end of period........................................ $ 11.05 12.83
------ ------
------ ------
TOTAL INVESTMENT RETURN+.............................................. (12.11)%(1) (33.83)%(1)
RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 2.83%(2) 2.62%(2)
Net investment loss................................................... (0.57)%(2) (0.77)%(2)
SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $ 1,300 $ 819
Portfolio turnover rate............................................... 38%(1) 42%
Average commission rate paid.......................................... $0.0059 $0.0075
</TABLE>

- ---------------------

* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
(1) Not annualized.
(2) Annualized.

SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE SIX FOR THE PERIOD
MONTHS ENDED JULY 28, 1997*
APRIL 30, 1998++ THROUGH OCTOBER
(UNAUDITED) 31, 1997++
- -----------------------------------------------------------------------------------------------------------

<S> <C> <C>
CLASS D SHARES

PER SHARE OPERATING PERFORMANCE:

Net asset value, beginning of period.................................. $ 12.86 $ 19.39
------ ------

Net investment income................................................. 0.02 0.02

Net realized and unrealized loss...................................... (1.53) (6.55)
------ ------

Total from investment operations...................................... (1.51) (6.53)
------ ------

Less dividends from net investment income............................. (0.27) --
------ ------

Net asset value, end of period........................................ $ 11.08 $ 12.86
------ ------
------ ------

TOTAL INVESTMENT RETURN+.............................................. (11.79)%(1) (33.68)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................................. 1.84%(2) 1.62%(2)

Net investment income................................................. 0.35%(2) 0.42%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............................... $1,517 $118

Portfolio turnover rate............................................... 38%(1) 42%

Average commission rate paid.......................................... $0.0059 $0.0075
</TABLE>

- ---------------------

* The date shares were first issued.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
+ Calculated based on the net asset value as of the last business day of the
period.
(1) Not annualized.
(2) Annualized.

SEE NOTES TO FINANCIAL STATEMENTS
27

<PAGE>

DIRECTORS
Michael Bozic
Charles A. Fiumefreddo DEAN WITTER
Edwin J. Garn PACIFIC
John R. Haire GROWTH FUND
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS
Charles A. Fiumefreddo
Chairman and Chief Executive Officer
Barry Fink
Vice President, Secretary and General Counsel
Thomas F. Caloia
Treasurer

TRANSFER AGENT
Morgan Stanley Dean Witter Trust FSB
Harborside Financial Center - Plaza Two
Jersey City, New Jersey 07311

INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York 10036

INVESTMENT MANAGER
Dean Witter InterCapital Inc.
Two World Trade Center
New York, New York 10048

SUB-ADVISER
Morgan Grenfell Investment Services Limited

The financial statements included herein have
been taken from the records of the Fund without
examination by the independent accountants and
accordingly they do not express an opinion thereon.

This report is submitted for the general information
of shareholders of the Fund. For more detailed
information about the Fund, its officers and directors,
fees, expenses and other pertinent information, please
see the prospectus of the Fund.

This report is not authorized for distribution to SEMIANNUAL REPORT
prospective investors in the Fund unless preceded or APRIL 30, 1998
accompanied by an effective prospectus.