MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC, N-30D, 2000-12-28

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC
N-30D, 2000-12-28

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<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC. TWO WORLD TRADE CENTER,
LETTER TO THE SHAREHOLDERS OCTOBER 31, 2000 NEW YORK, NEW YORK 10048

DEAR SHAREHOLDER:

Asian stock markets declined during the 12-month period ended October 31, 2000,
weighed down by both domestic and global factors. Heightened political tensions
and concerns over restructuring in the financial sector depressed market
sentiment, particularly in northern Asia. Throughout the region, anticipation of
a global economic slowdown coupled with continued high volatility worldwide in
technology stocks dampened performance.

PERFORMANCE AND PORTFOLIO STRATEGY

For the 12-month period ended October 31, 2000, Morgan Stanley Dean Witter
Pacific Growth Fund's Class B shares posted a total return of -8.86 percent,
compared to 1.09 percent for the broad-based Morgan Stanley Capital
International (MSCI) World Index. For the same period, the Fund's Class A, C and
D shares posted total returns of -8.10 percent, -8.88 percent and -7.94 percent,
respectively. The performance of the Fund's four share classes varies because
each has different expenses. The total return figures given assume the
reinvestment of all distributions but do not reflect the deduction of any
applicable sales charges. The accompanying chart compares the Fund's performance
to that of the MSCI World Index.

The Fund's underperformance relative to its benchmark can be attributed
partially to its stock selection in Australia and India. According to Morgan
Stanley Dean Witter Investment Management Inc., the Fund's sub-advisor, the
Fund's stock selection in Japan -- notably a shift earlier in the year to select
food, warehousing, basic materials and utility stocks coupled with select
quality high-technology blue chips -- contributed positively to its overall
performance during the period. Also benefiting the Fund was its equity selection
in Hong Kong and South Korea.

<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 2000, CONTINUED

The Fund focuses on companies poised to benefit from strong global demand for
electronic goods, a recovery in private consumption and global outsourcing. The
Fund's sub-advisor continues to favor stocks with significant earnings potential
in the electronics and technology areas, notably issues benefiting from strong
exports and ones that are attractively valued relative to their global peers.
The sub-advisor is also adding to other sectors it believes possess high
long-term growth potential, such as pharmaceuticals in India, which appear to
have operating earnings momentum, promising opportunities for sales of generic
drugs in the United States and relatively attractive valuations compared to
their global peers.

JAPAN

Although Japanese equities reached new year-to-date lows in October, with
foreign selling continuing despite better than expected earnings releases, the
market has also rallied at times during the year. Japan is recovering from dire
government policy errors and corporate inaction over the past several years.
This recovery, which has been manifesting itself in domestic activity, has been
gaining momentum over the last several quarters, particularly in strong profit
growth. Contributing to October's declines was a prevalent negative perception
of high-technology stocks, mirrored in the volatility of the Nasdaq and global
equity markets. In addition, foreign investors, who are estimated to have
purchased a net $85 billion in Japanese equities during 1999, have been selling
since March in an environment devoid of buyers. Within Japan the Fund continues
to favor world-class technology companies and economically sensitive and
cyclical stocks, focusing on valuations and earnings growth potential.

SOUTH KOREA

South Korean equities have been buffeted by Nasdaq-related volatility and
continuing doubts surrounding that government's efforts to restructure the
country's bad debt problem. The sub-advisor believes the markets will continue
to look for indications that the government is following through with
substantive restructuring and reform efforts. Morgan Stanley Dean Witter
Investment Management is optimistic that South Korea will weather the near-term
challenges of restructuring and anticipates that equities will benefit from
these efforts over the longer term.

HONG KONG

Hong Kong was one of the better-performing Asian markets during the fiscal year.
The market gained positive momentum from a strong Chinese economic environment
and increased attention on

2
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 2000, CONTINUED

the banking and property sectors as investors withdrew from the technology,
media and telecommunications sectors. Retail sentiment about property stocks
improved as the government stepped back from supplying units in the mass
residential market. Positive economic signs continue to emerge, such as
accelerating domestic demand, a dip in unemployment figures and September's
trade growth, which surpassed expectations.

TAIWAN

Taiwanese equities have been suppressed recently by downward earnings revisions
in the technology sector as well as political instability, which was underscored
by the opposition party's call for the president's impeachment. Although the
sub-advisor does not believe such an event is likely to occur, it does
anticipate political turmoil to continue in the near term.

SINGAPORE

Equities in Singapore have been affected negatively by the Nasdaq's volatility,
while high oil prices and ongoing inflationary concerns have outweighed strong
expansion in non-oil domestic exports and better than expected consumer demand.
The sub-advisor is encouraged by Singapore's commitment to systematic
restructuring. Recently released economic data show no significant slowdown,
with non-oil domestic exports and domestic consumption continuing to show robust
growth.

AUSTRALIA

Australian equities fared relatively well during this period, though the profit
cycle there has been decelerating. Australia's media sector has been weighed
down by concerns over a U.S. economic hard landing and fears of declining U.S.
advertising spending. Concerns over slower global growth have also weighed on
metals prices and Australia's resources sector.

LOOKING AHEAD

Despite the Asian markets' October decline, Morgan Stanley Dean Witter
Investment Management sees signs for optimism in Asia's export strength,
indications of domestic demand recovery in the region, and government actions
such as South Korea's commitment to adhere to rational, viable restructuring
plans. The sub-advisor continues to believe that Japan is attractively valued in
a relatively expensive world and that the domestic economic cycle is building
while the U.S. cycle is slowing. The sub-advisor expects that a rebound will
eventually occur in Japan, but this is not likely to happen until there is
confirmation that the U.S. markets have bottomed out. As fears of tighter

3
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS OCTOBER 31, 2000, CONTINUED

monetary policy reverse and market volatility in the United States subsides,
Morgan Stanley Dean Witter Investment Management continues to maintain its
positive long-term outlook for the Asian region.

We appreciate your ongoing support of Morgan Stanley Dean Witter Pacific Growth
Fund and look forward to continuing to serve your investment needs.

Very truly yours,

[/S/ CHARLES A. FIUMEFREDDO] [/S/ MITCHELL M. MERIN]
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT

4
<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FUND PERFORMANCE OCTOBER 31, 2000

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

GROWTH OF $10,000 -- CLASS B SHARES
($ in Thousands)

<TABLE>
<CAPTION>
FUND MSCI(4)
NOVEMBER 1990 $10,000 $10,000
JANUARY 1991 $10,230 $10,575
<S> <C> <C>
April 1991 $11,925 $11,291
July 1991 $12,136 $11,335
October 1991 $11,754 $11,773
January 1992 $12,364 $11,845
April 1992 $12,374 $11,236
July 1992 $12,272 $11,310
October 1992 $12,913 $11,157
January 1993 $12,742 $11,476
April 1993 $15,236 $12,994
July 1993 $16,172 $13,443
October 1993 $20,162 $14,170
January 1994 $23,329 $14,937
April 1994 $20,542 $14,534
July 1994 $21,110 $14,797
October 1994 $22,317 $15,254
January 1995 $17,900 $14,502
April 1995 $19,073 $15,949
July 1995 $21,408 $16,874
October 1995 $20,387 $16,701
January 1996 $22,388 $18,096
April 1996 $22,766 $18,933
July 1996 $20,465 $18,361
October 1996 $20,999 $19,422
January 1997 $21,769 $20,414
April 1997 $20,041 $20,890
July 1997 $22,243 $24,346
October 1997 $14,486 $22,680
January 1998 $12,402 $24,002
April 1998 $12,712 $26,956
July 1998 $10,036 $27,194
October 1998 $11,173 $26,140
January 1999 $11,977 $29,671
April 1999 $14,067 $31,257
July 1999 $16,398 $31,412
October 1999 $16,524 $32,653
January 2000 $19,536 $34,198
April 2000 $18,765 $35,098
July 2000 $17,396 $34,353
October 2000 $15,060(3) $33,010
</TABLE>

PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RETURNS. INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE. WHEN YOU SELL FUND SHARES, THEY MAY BE WORTH
LESS THAN THEIR ORIGINAL COST. PERFORMANCE FOR CLASS A, CLASS C, AND
CLASS D SHARES WILL VARY FROM THE PERFORMANCE OF CLASS B SHARES SHOWN ABOVE
DUE TO DIFFERENCES IN SALES CHARGES AND EXPENSES.

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
----------------------------------------------------------------------------------------------
CLASS A SHARES* CLASS B SHARES**
------------------------------------------- ---------------------------------------------
PERIOD ENDED 10/31/00 PERIOD ENDED 10/31/00
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year (8.10)%(1) (12.92)%(2) 1 Year (8.86)%(1) 13.41%(2)
Since Inception (7/28/97) (10.16)%(1) (11.64)%(2) 5 Years (5.88)%(1) (6.24)%(2)
Since Inception
(11/30/90) 4.21%(1) 4.21%(2)
</TABLE>

<TABLE>
<CAPTION>
CLASS C SHARES+ CLASS D SHARES#
------------------------------------------- ---------------------------------------------
PERIOD ENDED 10/31/00 PERIOD ENDED 10/31/00
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year (8.88)%(1) (9.79)%(2) 1 Year (7.94)%(1)
Since Inception (7/28/97) (10.77)%(1) (10.77)%(2) Since Inception (7/28/97) (9.96)%(1)
</TABLE>

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

(1) Figure shown assumes reinvestment of all distributions and does not reflect
the deduction of any sales charges.
(2) Figure shown assumes reinvestment of all distributions and the deduction of
the maximum applicable sales charge. See the Fund's current prospectus for
complete details on fees and sales charges.
(3) Closing value assuming a complete redemption on October 31, 2000.
(4) The Morgan Stanley Capital International (MSCI) World Index measures
performance from a diverse range of global stock markets including
securities representative of the market structure of 22 developed market
countries in North America, Europe, and the Asia/Pacific region. The
performance of the Index is listed in U.S. dollars and assumes reinvestment
of net dividends. "Net dividends" reflects a reduction in dividends after
taking into account withholding of taxes by certain foreign countries
represented in the Index. The Index does not include any expenses, fees or
charges. The Index is unmanaged and should not be considered an investment.
* The maximum front-end sales charge for Class A is 5.25%.
** The maximum contingent deferred sales charge (CDSC) for Class B is 5.0%.
The CDSC declines to 0% after six years.
+ The maximum contingent deferred sales charge for Class C shares is 1% for
shares redeemed within one year of purchase.
# Class D shares have no sales charge.

5
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON AND PREFERRED STOCKS AND BONDS (97.9%)
AUSTRALIA (6.1%)
AIRLINES
629,900 Quantas Airways Ltd............................................................. $ 1,274,063
------------
BEVERAGES: ALCOHOLIC
607,700 Foster's Brewing Group Ltd...................................................... 1,384,390
------------
ELECTRONIC EQUIPMENT/INSTRUMENTS
157,200 ERG Ltd......................................................................... 774,412
------------
MAJOR BANKS
91,800 Commonwealth Bank of Australia.................................................. 1,373,879
182,050 National Australia Bank Ltd..................................................... 2,543,391
255,250 Westpac Banking Corp., Ltd...................................................... 1,752,957
------------
5,670,227
------------
MAJOR TELECOMMUNICATIONS
978,100 Telstra Corp. Ltd............................................................... 3,210,227
------------
MEDIA CONGLOMERATES
523,900 News Corporation Ltd............................................................ 5,511,341
------------
MEDICAL/NURSING SERVICES
144,600 Sonic Healthcare Ltd............................................................ 587,964
------------
MISCELLANEOUS COMMERCIAL SERVICES
62,900 Brambles Industries, Ltd........................................................ 1,640,112
------------
OTHER METALS/MINERALS
388,500 Broken Hill Proprietary Co., Ltd................................................ 3,787,218
109,263 OneSteel Ltd.*.................................................................. 52,402
241,650 Rio Tinto Ltd................................................................... 3,335,994
------------
7,175,614
------------
PHARMACEUTICALS: OTHER
78,850 CSL Limited..................................................................... 1,410,624
------------
PRECIOUS METALS
1,238,100 Normandy Mining Ltd............................................................. 600,242
------------
REAL ESTATE DEVELOPMENT
103,800 Lend Lease Corporation Ltd...................................................... 1,222,096
------------
SPECIALTY TELECOMMUNICATIONS
505,500 Davnet Limited.................................................................. 205,543
------------

TOTAL AUSTRALIA................................................................. 30,666,855
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

CHINA (1.2%)
CHEMICALS: SPECIALTY
5,030,000 China Petroleum and Chemical Corporation*....................................... $ 986,856
------------
ELECTRONIC COMPONENTS
2,218,000 Great Wall Technology Co........................................................ 668,381
------------
INVESTMENT TRUSTS/MUTUAL FUNDS
100,000 Investment Co. of
China* **..................................................................... 275,000
------------
MAJOR TELECOMMUNICATIONS
1,370,000 China Unicom Ltd.*.............................................................. 2,749,346
------------
OIL & GAS PRODUCTION
5,554,000 PetroChina Co. Ltd.............................................................. 1,168,004
------------

TOTAL CHINA..................................................................... 5,847,587
------------

HONG KONG (11.1%)
AIRLINES
1,113,000 Cathay Pacific Airways, Ltd..................................................... 2,019,510
------------
BROADCASTING
282,600 Television Broadcasts Ltd....................................................... 1,547,371
------------
COMPUTER PROCESSING HARDWARE
1,296,000 Legend Holdings Ltd. (Hong Kong)................................................ 1,096,840
------------
ELECTRONIC PRODUCTION EQUIPMENT
254,000 ASM Pacific Technology Ltd...................................................... 504,847
------------
GAS DISTRIBUTORS
1,468,500 Hong Kong & China Gas Co., Ltd.................................................. 1,854,832
------------
INDUSTRIAL CONGLOMERATES
1,194,190 Hutchison Whampoa, Ltd.......................................................... 14,815,588
538,800 Swire Pacific Ltd. (Class A).................................................... 3,323,282
------------
18,138,870
------------
INDUSTRIAL SPECIALTIES
1,061,000 China Merchants Holdings International Co., Ltd................................. 734,689
------------
INTERNET SOFTWARE/SERVICES
1,018,000 Timeless Software Ltd.*......................................................... 143,594
------------
MAJOR BANKS
164,800 Hang Seng Bank Ltd.............................................................. 1,938,910
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

TOTAL HONG KONG................................................................. 55,555,979
------------
INDIA (4.7%)
CHEMICALS: SPECIALTY
130,000 Reliance Industries Ltd......................................................... 840,288
------------
COMPUTER PROCESSING HARDWARE
85,100 Digital Equipment (India) Ltd................................................... 861,615
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
CONSTRUCTION MATERIALS
153,000 Gujarat Ambuja Cements Ltd...................................................... $ 436,817
------------
DATA PROCESSING SERVICES
20,950 HCL Technologies Ltd............................................................ 531,366
------------
ELECTRICAL PRODUCTS
167,500 Sterlite Industries Ltd......................................................... 584,464
167,500 Sterlite Optical Technologies Ltd.*............................................. 3,651,786
------------
4,236,250
------------
GAS DISTRIBUTORS
464,961 Gas Authority of India Ltd...................................................... 426,297
93,000 Gas Authority of India Ltd. (GDR)............................................... 476,625
------------
902,922
------------
INFORMATION TECHNOLOGY SERVICES
26,858 Infosys Technologies Ltd........................................................ 4,105,666
500 Satyam Computer Service Ltd..................................................... 3,275
------------
4,108,941
------------
MAJOR TELECOMMUNICATIONS
204,921 Videsh Sanchar Nigam Ltd........................................................ 921,926
------------
MISCELLANEOUS COMMERCIAL SERVICES
162,000 Aptech Ltd...................................................................... 1,477,516
35,700 ASE Test Ltd. (ADR)*............................................................ 551,119
------------
2,028,635
------------
MISCELLANEOUS MANUFACTURING
110,000 Grasim Industries Ltd........................................................... 476,824
6,800 Ramco Systems Ltd.*............................................................. 137,051
------------
613,875
------------
MOTOR VEHICLES
46,000 Hero Honda Motors Ltd........................................................... 865,957
------------
PACKAGED SOFTWARE
43,800 NIIT Ltd........................................................................ 1,472,576
27,644 PSI Data Systems Ltd............................................................ 214,521
54,850 Software Solution Integrated Ltd................................................ 2,495,207
------------
4,182,304
------------
PHARMACEUTICALS: GENERIC DRUGS
43,600 Dr. Reddy's Laboratories Ltd.................................................... 1,303,259
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

TOTAL INDIA..................................................................... 24,036,512
------------

INDONESIA (0.0%)
INVESTMENT TRUSTS/MUTUAL FUNDS
2,500,000 Batavia Investment Fund Ltd.*................................................... --
------------

JAPAN (54.3%)
BUILDING PRODUCTS
546,000 Sanwa Shutter Corp.............................................................. 1,295,475
JPY 80,000K Sanwa Shutter Corp. 0.90% due 03/31/06 (Conv.).................................. 727,006
------------
2,022,481
------------
CHEMICALS: SPECIALTY
934,000 Daicel Chemical Industries, Ltd................................................. 2,840,674
358,000 Denki Kagaku Kogyo Kabushiki Kaisha............................................. 1,285,599
657,000 Kaneka Corp..................................................................... 6,379,809
762,000 Mitsubishi Chemical Corp........................................................ 2,408,300
284,000 NIFCO Inc....................................................................... 3,119,421
415,000 Shin-Etsu Polymer Co., Ltd...................................................... 2,528,170
------------
18,561,973
------------
COMMERCIAL PRINTING/FORMS
296,000 Dai Nippon Printing Co., Ltd.................................................... 4,636,863
147,000 Nissha Printing Co., Ltd........................................................ 770,282
------------
5,407,145
------------
COMPUTER PERIPHERALS
216,000 Mitsumi Electric Co., Ltd....................................................... 7,123,488
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMPUTER PROCESSING HARDWARE
405,000 Fujitsu Ltd..................................................................... $ 7,212,532
------------
ELECTRIC UTILITIES
120,000 Tokyo Electric Power Co......................................................... 2,913,155
------------
ELECTRICAL PRODUCTS
165,000 Furukawa Electric Co............................................................ 4,338,128
------------
ELECTRONIC COMPONENTS
75,000 TDK Corp........................................................................ 7,557,713
------------
ELECTRONIC DISTRIBUTORS
159,000 Ryosan Co., Ltd................................................................. 2,949,569
------------
ELECTRONIC EQUIPMENT/INSTRUMENTS
211,000 Canon, Inc...................................................................... 8,369,641
59,300 Kyocera Corp.................................................................... 7,713,998
342,000 Matsushita Electric Industrial Co., Ltd......................................... 9,931,660
430,000 NEC Corp........................................................................ 8,193,477
1,040,000 Toshiba Corp.................................................................... 7,431,294
------------
41,640,070
------------
ELECTRONICS/APPLIANCES
176,300 Aiwa Co., Ltd................................................................... 1,492,316
466,000 Casio Computer Co., Ltd......................................................... 4,695,859
143,500 Rinnai Corp..................................................................... 2,938,095
113,200 Sony Corp....................................................................... 9,042,726
------------
18,168,996
------------
ENGINEERING & CONSTRUCTION
60,000 Kyudenko Corp................................................................... 196,226
------------
FINANCE/RENTAL/LEASING
282,800 Hitachi Credit Corp............................................................. 7,202,125
------------
FOOD RETAIL
111,900 FamilyMart Co., Ltd............................................................. 2,962,541
------------
FOOD: MEAT/FISH/DAIRY
240,000 Nippon Meat Packers, Inc........................................................ 3,042,873
------------
FOOD: SPECIALTY/CANDY
120,000 House Foods Corp................................................................ 1,572,004
------------
HOME BUILDING
605,000 Sekisui Chemical Co., Ltd....................................................... 1,745,832
419,000 Sekisui House Ltd............................................................... 4,429,516
------------
6,175,348
------------
HOME FURNISHINGS
46,000 Sangetsu Co., Ltd............................................................... 618,193
------------
INDUSTRIAL CONGLOMERATES
783,000 Hitachi Ltd..................................................................... 8,392,360
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL MACHINERY
545,000 Amada Co., Ltd.................................................................. $ 4,243,771
493,000 Daifuku Co., Ltd................................................................ 4,064,676
355,000 Daikin Industries, Ltd.......................................................... 6,861,946
151,000 Fuji Machine Manufacturing Co., Ltd............................................. 4,122,206
425,000 Minebea Co., Ltd................................................................ 4,243,771
1,007,000 Mitsubishi Heavy Industries Ltd................................................. 3,911,396
666,000 Tsubakimoto Chain Co............................................................ 2,184,207
------------
29,631,973
------------
INDUSTRIAL SPECIALTIES
286,000 Fujitec Co., Ltd................................................................ 2,192,946
326,000 Lintec Corp..................................................................... 3,052,144
------------
5,245,090
------------
MAJOR BANKS
100,000 Bank of Tokyo-Mitsubishi, Ltd................................................... 1,199,157
------------
MAJOR TELECOMMUNICATIONS
750 Nippon Telegraph & Telephone Corp............................................... 6,822,554
------------
MARINE SHIPPING
203,000 Mitsubishi Logistics Corp....................................................... 1,729,480
------------
MISCELLANEOUS MANUFACTURING
238,000 Kurita Water Industries Ltd..................................................... 3,870,007
------------
MOTOR VEHICLES
858,000 Nissan Motor Co., Ltd.*......................................................... 5,887,156
338,000 Suzuki Motor Corp............................................................... 3,622,756
145,000 Toyota Motor Corp............................................................... 5,791,499
------------
15,301,411
------------
OFFICE EQUIPMENT/SUPPLIES
525,000 Ricoh Co., Ltd.................................................................. 8,079,883
------------
PHARMACEUTICALS: MAJOR
263,000 Sankyo Co., Ltd................................................................. 5,794,384
------------
PHARMACEUTICALS: OTHER
161,000 Ono Pharmaceutical Co., Ltd..................................................... 6,415,812
159,000 Yamanouchi Pharmaceutical Co., Ltd.............................................. 7,195,493
------------
13,611,305
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
REAL ESTATE DEVELOPMENT
700 Chubu Sekiwa Real Estate, Ltd................................................... $ 3,200
344,000 Mitsubishi Estate Co., Ltd...................................................... 3,655,552
------------
3,658,752
------------
RECREATIONAL PRODUCTS
209,000 Fuji Photo Film Co., Ltd........................................................ 7,754,214
63,100 Nintendo Co., Ltd............................................................... 10,433,813
338,000 Yamaha Corp..................................................................... 2,910,590
------------
21,098,617
------------
SEMICONDUCTORS
24,000 Rohm Co., Ltd................................................................... 6,048,369
------------
WHOLESALE DISTRIBUTORS
138,000 Nagase & Company, Ltd........................................................... 661,176
86,000 Nissei Sangyo Co., Ltd.......................................................... 1,029,700
------------
1,690,876
------------

TOTAL JAPAN..................................................................... 271,838,778
------------

MALAYSIA (2.5%)
BEVERAGES: ALCOHOLIC
444,000 Carlsberg Brewery (Malaysia) Berhad............................................. 1,285,229
------------
CASINO/GAMING
403,000 Tanjong PLC..................................................................... 752,954
------------
ELECTRIC UTILITIES
354,000 Tenaga Nasional Berhad.......................................................... 1,145,812
------------
HOTELS/RESORTS/CRUISELINES
366,000 Resorts World Berhad............................................................ 640,483
------------
MAJOR BANKS
613,000 Malayan Banking Berhad.......................................................... 2,451,935
------------
MAJOR TELECOMMUNICATIONS
747,000 Digi.com Berhad*................................................................ 1,120,471
503,000 Telekom Malaysia Berhad......................................................... 1,548,670
------------
2,669,141
------------
REGIONAL BANKS
270,000 Commerce Asset-Holdings Berhad.................................................. 685,640
636,000 Public Bank Berhad.............................................................. 548,954
------------
1,234,594
------------
SEMICONDUCTORS
157,000 Malaysian Pacific Industries Berhad............................................. 888,266
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TOBACCO
171,200 British American Tobacco (Malaysia) Berhad...................................... $ 1,565,538
------------
TOTAL MALAYSIA.................................................................. 12,633,952
------------

NEW ZEALAND (0.1%)
MAJOR TELECOMMUNICATIONS
251,400 Telecom Corporation of New Zealand Ltd.......................................... 559,161
------------

SINGAPORE (5.2%)
AIRLINES
343,000 Singapore Airlines Ltd.......................................................... 3,439,380
------------
ELECTRONIC COMPONENTS
283,100 Venture Manufacturing Ltd....................................................... 2,741,967
------------
FINANCIAL CONGLOMERATES
415,000 Keppel Corp., Ltd............................................................... 827,541
------------
MAJOR BANKS
482,244 DBS Group Holdings Ltd.......................................................... 5,687,358
------------
MARINE SHIPPING
527,000 Neptune Orient Lines Ltd.*...................................................... 447,373
300,600 Sembcorp Logistics Ltd.......................................................... 1,626,994
------------
2,074,367
------------
MISCELLANEOUS COMMERCIAL SERVICES
496,000 SIA Engineering Co., Ltd.*...................................................... 409,754
------------
MISCELLANEOUS MANUFACTURING
455,000 Omni Industries Ltd............................................................. 767,320
------------
PROPERTY - CASUALTY INSURERS
410,000 Pacific Century Regional Developments Limited*.................................. 315,349
------------
PUBLISHING: NEWSPAPERS
157,099 Singapore Press Holdings Ltd.................................................... 2,246,573
------------
REAL ESTATE DEVELOPMENT
227,400 City Developments, Ltd.......................................................... 1,049,419
452,000 DBS Land Ltd.................................................................... 687,580
------------
1,736,999
------------
REGIONAL BANKS
388,310 Oversea-Chinese Banking Corp. Ltd............................................... 2,477,821
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
272,104 Overseas Union Bank Ltd......................................................... $ 1,317,732
153,000 United Overseas Bank Ltd........................................................ 1,133,204
------------
4,928,757
------------
SEMICONDUCTORS
246,000 Chartered Semiconductor Manufacturing Ltd.*..................................... 1,065,178
------------

TOTAL SINGAPORE................................................................. 26,240,543
------------

SOUTH KOREA (5.8%)
ADVERTISING/MARKETING SERVICES
12,680 Cheil Communications Inc........................................................ 812,678
------------
CATALOG/SPECIALTY DISTRIBUTION
9,320 LG Home Shopping Inc............................................................ 559,691
------------
CELLULAR TELEPHONE
177,700 SK Telecom Co., Ltd. (ADR)...................................................... 4,453,606
------------
DEPARTMENT STORES
12,850 CJ39 Shopping Corp.............................................................. 245,380
------------
ELECTRIC UTILITIES
32,110 Korea Electric Power Corp....................................................... 716,061
112,200 Korea Electric Power Corp. (ADR)................................................ 1,367,438
------------
2,083,499
------------
ELECTRONIC COMPONENTS
23,308 Samsung Electro-Mechanics Co.................................................... 744,874
------------
ELECTRONIC EQUIPMENT/INSTRUMENTS
58,949 Samsung Electronics Co. Ltd.*................................................... 7,375,094
------------
ELECTRONICS/APPLIANCES
71,740 Humax Co., Ltd.*................................................................ 673,940
9,050 Samsung Electronics - (Pref.)................................................... 463,227
------------
1,137,167
------------
FOOD: SPECIALTY/CANDY
24,850 Tong Yang Confectionery Corp.................................................... 621,795
------------
MAJOR BANKS
400,050 Hanvit Bank*.................................................................... 477,672
104,966 Kookmin Bank.................................................................... 1,198,032
------------
1,675,704
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

TOTAL SOUTH KOREA............................................................... 29,017,462
------------

TAIWAN (6.0%)
ADVERTISING/MARKETING SERVICES
257,237 Pro Mos Technologies Inc.*...................................................... 244,116
------------
CHEMICALS: SPECIALTY
1,053,048 Nan Ya Plastic Corp............................................................. 1,253,241
------------
COMPUTER PERIPHERALS
221,048 Acer Communications & Multi Media Inc........................................... 263,071
93,589 Ambit Microsystems Corp......................................................... 433,952
417,620 Hon Hai Precison Industry Co. Ltd............................................... 2,181,693
------------
2,878,716
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMPUTER PROCESSING HARDWARE
153,400 Advantech Co., Ltd.*............................................................ $ 573,768
367,626 Asustek Computer Inc............................................................ 1,829,607
555,004 Compal Electronics Inc.......................................................... 845,802
------------
3,249,177
------------
ELECTRONIC COMPONENTS
16,000 Via Technologies Inc.*.......................................................... 114,745
796,000 Yageo Corporation*.............................................................. 610,226
------------
724,971
------------
ELECTRONIC EQUIPMENT/INSTRUMENTS
383,500 Delta Electronics, Inc.......................................................... 1,221,036
------------
ELECTRONIC PRODUCTION EQUIPMENT
2,604,541 Taiwan Semiconductor Manufacturing Co. Ltd.*.................................... 7,890,110
------------
FOOD RETAIL
298,872 President Chain Store Corp...................................................... 849,961
------------
FOOD: SPECIALTY/CANDY
795,000 President Enterprises Corp.*.................................................... 530,819
------------
REGIONAL BANKS
1,156,232 China Trust Commercial Bank*.................................................... 732,697
1,441,900 Taishin International Bank*..................................................... 673,035
------------
1,405,732
------------
SEMICONDUCTORS
596,585 Advanced Semiconductor Engineering Inc.*........................................ 684,182
471,510 Macronix International Co., Ltd.*............................................... 670,462
90,000 Realtek Semiconductor Corp...................................................... 335,240
107,200 Siliconware Precision - ADR*.................................................... 428,800
799,328 Siliconware Precision Industries Co.*........................................... 607,835
3,121,800 United Microelectronics Corp., Ltd.*............................................ 5,500,544
827,620 Winbond Electronics Corp.*...................................................... 800,758
------------
9,027,821
------------
TELECOMMUNICATION EQUIPMENT
131,000 Zinwell Corporation............................................................. 315,858
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
TEXTILES
97,440 Far Eastern Textile Ltd......................................................... $ 80,121
69,906 Far Eastern Textile Ltd. - 144A (GDS)=/=........................................ 566,239
------------
646,360
------------
TOTAL TAIWAN.................................................................... 30,237,918
------------

THAILAND (0.9%)
CONSTRUCTION MATERIALS
200,433 Siam City Cement Co. PCL*....................................................... 473,858
------------
ELECTRONIC COMPONENTS
172,672 Delta Electronics (Thailand) Public Co., Ltd.................................... 792,902
------------
MOVIES/ENTERTAINMENT
173,300 BEC World PCL................................................................... 803,664
------------
REAL ESTATE DEVELOPMENT
2,168,600 Golden Land Property Development Company Ltd.*.................................. 211,980
------------
REGIONAL BANKS
1,319,300 Thai Farmers Bank PCL*.......................................................... 682,293
------------
WIRELESS COMMUNICATIONS
134,100 Advanced Info Service PCL*...................................................... 1,103,528
183,400 Total Access Communication PCL.................................................. 583,212
------------
1,686,740
------------

TOTAL THAILAND.................................................................. 4,651,437
------------

TOTAL COMMON AND PREFERRED STOCKS AND BONDS
(COST $462,753,628)............................................................. 491,286,184
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

SHORT-TERM INVESTMENT (a) (0.1%)
COMMERCIAL PAPER
FINANCIAL CONGLOMERATES
$ 350,000 General Electric Capital Corp. 6.45% due 12/14/00 (COST $347,304)............... $ 347,304
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(COST $463,100,932)(B).................................................................... 98.0% 491,633,488

OTHER ASSETS IN EXCESS OF LIABILITIES..................................................... 2.0 10,280,643
----- -------------

NET ASSETS................................................................................ 100.0% $ 501,914,131
----- -------------
----- -------------
</TABLE>

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

ADR American Depository Receipt.
GDR Global Depository Receipt.
GDS Global Depository Share.
K In thousands.
* Non-income producing security.
** Partially paid shares. Resale is restricted to qualified institutional
investors.
=/= Resale is restricted to qualified institutional investors.
(a) Purchased on a discount basis. The interest rate shown has been adjusted to
reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates the
aggregate cost for book purposes. The aggregate gross unrealized
appreciation is $90,904,986 and the aggregate gross unrealized depreciation
is $62,372,430, resulting in net unrealized appreciation of $28,532,556.

SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2000, CONTINUED

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT OCTOBER 31, 2000:

<TABLE>
<CAPTION>
IN UNREALIZED
CONTRACTS TO EXCHANGE DELIVERY APPRECIATION/
DELIVER FOR DATE (DEPRECIATION)
--------------------------------------------------------------
<S> <C> <C> <C>
AUD 6,836,558 $3,580,989 11/01/00 $ 17,091
AUD 432,511 $ 222,484 11/02/00 (2,984)
AUD 1,768,701 $ 909,820 11/02/00 (12,204)
HKD 1,505,920 $ 193,079 11/01/00 (27)
IDR 1,719,611,601 $ 183,327 11/06/00 0
IDR 869,403,902 $ 92,588 11/07/00 (99)
JPY 380,414,247 $3,495,812 11/02/00 10,888
NZD 1,685,167 $ 666,147 11/02/00 (5,561)
SGD 164,438 $ 93,686 11/01/00 0
SGD 147,367 $ 83,874 11/02/00 (86)
---------
Net unrealized appreciation............ $ 7,018
=========
</TABLE>

CURRENCY ABBREVIATIONS:
------------------------

<TABLE>
<S> <C>
AUD Australian Dollar.
HKD Hong Kong Dollar.
IDR Indonesian Rupiah.
JPY Japanese Yen.
NZD New Zealand Dollar.
SGD Singapore Dollar.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS OCTOBER 31, 2000

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Advertising/Marketing Services.................................................... $ 1,056,794 0.2%
Airlines.......................................................................... 6,732,953 1.3
Beverages: Alcoholic.............................................................. 2,669,619 0.5
Broadcasting...................................................................... 1,547,371 0.3
Building Products................................................................. 2,022,481 0.4
Casino/Gaming..................................................................... 752,954 0.2
Catalog/Specialty Distribution.................................................... 559,691 0.1
Cellular Telephone................................................................ 4,453,606 0.9
Chemicals: Specialty.............................................................. 21,642,358 4.3
Commercial Printing/Forms......................................................... 5,407,145 1.1
Computer Peripherals.............................................................. 10,002,204 2.0
Computer Processing Hardware...................................................... 12,420,164 2.5
Construction Materials............................................................ 910,675 0.2
Data Processing Services.......................................................... 531,366 0.1
Department Stores................................................................. 245,380 0.0
Electric Utilities................................................................ 6,142,466 1.2
Electrical Products............................................................... 8,574,378 1.7
Electronic Components............................................................. 13,230,808 2.6
Electronic Distributors........................................................... 2,949,569 0.6
Electronic Equipment/Instruments.................................................. 51,010,612 10.2
Electronic Production Equipment................................................... 8,394,957 1.7
Electronics/Appliances............................................................ 19,306,163 3.9
Engineering & Construction........................................................ 196,226 0.0
Finance/Rental/Leasing............................................................ 7,202,125 1.4
Financial Conglomerates........................................................... 1,174,845 0.2
Food Retail....................................................................... 3,812,502 0.8
Food: Meat/Fish/Dairy............................................................. 3,042,873 0.6
Food: Specialty/Candy............................................................. 2,724,618 0.5
Gas Distributors.................................................................. 2,757,754 0.6
Home Building..................................................................... 6,175,348 1.2
Home Furnishings.................................................................. 618,193 0.1
Hotels/Resorts/Cruiselines........................................................ 640,483 0.1
Industrial Conglomerates.......................................................... 26,531,230 5.3
Industrial Machinery.............................................................. 29,631,973 5.9
Industrial Specialties............................................................ 5,979,779 1.2
Information Technology Services................................................... 4,108,941 0.8
Internet Software/Services........................................................ 143,594 0.1
Investment Trusts/Mutual Funds.................................................... 275,000 0.1
Major Banks....................................................................... 18,623,291 3.7
Major Telecommunications.......................................................... 17,460,453 3.5
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Marine Shipping................................................................... $ 3,803,847 0.8%
Media Conglomerates............................................................... 5,511,341 1.1
Medical/Nursing Services.......................................................... 587,964 0.1
Miscellaneous Commercial Services................................................. 4,962,561 1.0
Miscellaneous Manufacturing....................................................... 6,845,205 1.4
Motor Vehicles.................................................................... 16,562,504 3.3
Movies/Entertainment.............................................................. 803,664 0.2
Office Equipment/Supplies......................................................... 8,079,883 1.6
Oil & Gas Production.............................................................. 1,168,004 0.2
Other Metals/Minerals............................................................. 7,175,614 1.4
Packaged Software................................................................. 4,182,304 0.8
Pharmaceuticals: Generic Drugs.................................................... 1,303,259 0.3
Pharmaceuticals: Major............................................................ 5,794,384 1.2
Pharmaceuticals: Other............................................................ 15,813,753 3.2
Precious Metals................................................................... 600,242 0.1
Property - Casualty Insurers...................................................... 315,349 0.1
Publishing: Newspapers............................................................ 2,246,573 0.4
Real Estate Development........................................................... 17,064,408 3.4
Recreational Products............................................................. 21,098,617 4.2
Regional Banks.................................................................... 12,771,687 2.5
Semiconductors.................................................................... 17,815,374 3.6
Specialty Telecommunications...................................................... 4,588,629 0.9
Steel............................................................................. 817,506 0.2
Telecommunication Equipment....................................................... 447,186 0.1
Textiles.......................................................................... 646,360 0.1
Tobacco........................................................................... 1,565,538 0.3
Trucks/Construction/Farm Machinery................................................ 236,153 0.0
Wholesale Distributors............................................................ 5,622,644 1.1
Wireless Communications........................................................... 11,539,993 2.3
------------ ----
$491,633,488 98.0%
------------ ----
------------ ----
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks..................................................................... $490,095,951 97.7%
Convertible Bonds................................................................. 727,006 0.1
Preferred Stocks.................................................................. 463,227 0.1
Short-Term Investments............................................................ 347,304 0.1
------------ ----
$491,633,488 98.0%
------------ ----
------------ ----
</TABLE>

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

STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2000

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(cost $463,100,932)........................................................................ $ 491,633,488
Unrealized appreciation on open forward foreign currency contracts........................... 7,018
Foreign currency............................................................................. 1,969,504
Receivable for:
Investments sold......................................................................... 12,600,769
Capital stock sold....................................................................... 10,958,455
Dividends................................................................................ 739,076
Foreign withholding taxes reclaimed...................................................... 71,285
Prepaid expenses and other assets............................................................ 97,472
-------------
TOTAL ASSETS............................................................................ 518,077,067
-------------
LIABILITIES:
Payable for:
Capital stock repurchased................................................................ 1,114,736
Plan of distribution fee................................................................. 446,962
Investment management fee................................................................ 435,749
Payable to bank.............................................................................. 13,924,062
Accrued expenses and other payables.......................................................... 241,427
-------------
TOTAL LIABILITIES....................................................................... 16,162,936
-------------
NET ASSETS.............................................................................. $ 501,914,131
=============
COMPOSITION OF NET ASSETS:
Paid-in-capital.............................................................................. $ 820,851,526
Net unrealized appreciation.................................................................. 28,687,529
Accumulated net investment loss.............................................................. (2,012,926)
Accumulated net realized loss................................................................ (345,611,998)
-------------
NET ASSETS.............................................................................. $ 501,914,131
=============
CLASS A SHARES:
Net Assets................................................................................... $15,646,310
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 1,177,625
NET ASSET VALUE PER SHARE............................................................... $13.29
=============

MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET ASSET VALUE)....................................... $14.03
=============
CLASS B SHARES:
Net Assets................................................................................... $469,923,807
Shares Outstanding (500,000,000 authorized, $.01 par value).................................. 35,838,859
NET ASSET VALUE PER SHARE............................................................... $13.11
=============
CLASS C SHARES:
Net Assets................................................................................... $11,219,091
Shares Outstanding (500,000,000 authorized, $.01 par value).................................. 858,636
NET ASSET VALUE PER SHARE............................................................... $13.07
=============
CLASS D SHARES:
Net Assets................................................................................... $5,124,923
Shares Outstanding (500,000,000 authorized, $.01 par value).................................. 383,803
NET ASSET VALUE PER SHARE............................................................... $13.35
=============
</TABLE>

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

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2000

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

INCOME
Dividends (net of $2,115,418 foreign withholding tax)......................................... $ 5,809,986
Interest...................................................................................... 443,361
------------

TOTAL INCOME............................................................................. 6,253,347
------------

EXPENSES
Plan of distribution fee (Class A shares)..................................................... 27,992
Plan of distribution fee (Class B shares)..................................................... 6,548,627
Plan of distribution fee (Class C shares)..................................................... 133,266
Investment management fee..................................................................... 6,504,772
Transfer agent fees and expenses.............................................................. 1,474,713
Custodian fees................................................................................ 737,090
Registration fees............................................................................. 276,391
Shareholder reports and notices............................................................... 233,335
Professional fees............................................................................. 71,810
Directors' fees and expenses.................................................................. 17,274
Other......................................................................................... 38,986
------------

TOTAL EXPENSES........................................................................... 16,064,256
------------

NET INVESTMENT LOSS:..................................................................... (9,810,909)
------------

NET REALIZED AND UNREALIZED GAIN (LOSS):
Net realized gain/loss on:
Investments............................................................................... 73,444,844
Foreign exchange transactions............................................................. (490,767)
------------

NET GAIN................................................................................. 72,954,077
------------
Net change in unrealized appreciation/depreciation on:
Investments............................................................................... (95,232,578)
Translation of forward foreign currency contracts, other assets and liabilities
denominated in foreign currencies....................................................... 155,903
------------

NET DEPRECIATION......................................................................... (95,076,675)
------------

NET LOSS................................................................................. (22,122,598)
------------

NET DECREASE.................................................................................. $(31,933,507)
============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL STATEMENTS, CONTINUED

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment loss..................................................... $ (9,810,909) $ (2,160,050)
Net realized gain (loss)................................................ 72,954,077 (2,794,282)
Net change in unrealized appreciation................................... (95,076,675) 205,302,227
------------- ------------

NET INCREASE (DECREASE)............................................ (31,933,507) 200,347,895
------------- ------------

DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A shares.......................................................... (72,565) --
Class B shares.......................................................... (1,348,667) --
Class C shares.......................................................... (63,592) --
Class D shares.......................................................... (15,563) --
------------- ------------

TOTAL DIVIDENDS.................................................... (1,500,387) --
------------- ------------
Net increase (decrease) from capital stock transactions................. (122,682,703) 42,445,104
------------- ------------

NET INCREASE (DECREASE)............................................ (156,116,597) 242,792,999
------------- ------------

NET ASSETS:
Beginning of period..................................................... 658,030,728 415,237,729
------------- ------------

END OF PERIOD
(INCLUDING A NET INVESTMENT LOSS OF $2,012,926 AND DIVIDENDS IN
EXCESS OF NET INVESTMENT INCOME OF $1,503,849, RESPECTIVELY)........ $ 501,914,131 $658,030,728
============= ============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000

1. ORGANIZATION AND ACCOUNTING POLICIES

Morgan Stanley 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 converted to a multiple class
share structure.

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 and 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 portfolio security listed or traded
on the New York or American Stock Exchange, NASDAQ, or other 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) when market quotations are
not readily available, including circumstances under which it is determined by
Morgan Stanley Dean Witter Advisors Inc. (the "Investment Manager") or Morgan
Stanley Dean Witter Investment Management Inc. (the "Sub-Advisor") 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
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

18
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000, CONTINUED

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 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

19
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000, CONTINUED

and forward foreign currency contracts ("forward 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
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 tax purposes 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

20
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000, CONTINUED

assets of the Fund determined as of the close of each business day: 0.95% to the
portion of daily net assets not exceeding $1 billion; 0.90% to the portion of
daily net assets exceeding $1 billion but not exceeding $2 billion; and 0.85% to
the portion of daily net assets in excess of $2 billion.

Under a Sub-Advisory Agreement between the Sub-Advisor and the Investment
Manager, the Sub-Advisor 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-Advisor monthly compensation equal to 40% of its monthly compensation.

3. PLAN OF DISTRIBUTION

Shares of the Fund are distributed by Morgan Stanley Dean Witter Distributors
Inc. (the "Distributor"), an affiliate of the Investment Manager and
Sub-Advisor. 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 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 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 totaled
$40,935,500 at October 31, 2000.

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

21
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000, CONTINUED

that expenses representing a gross sales credit to Morgan Stanley Dean Witter
Financial Advisors or other selected broker-dealer representatives may be
reimbursed in the subsequent calendar year. For the year ended October 31, 2000,
the distribution fee was accrued for Class A shares and Class C shares at the
annual rate of 0.23% and 1.0%, respectively.

The Distributor has informed the Fund that for the year ended October 31, 2000,
it received contingent deferred sales charges from certain redemptions of the
Fund's Class A shares, Class B shares and Class C shares of $124,238, $897,491,
and $14,489, respectively and received $44,088 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 year ended October 31, 2000 aggregated
$244,569,801 and $344,865,027, respectively.

For the year ended October 31, 2000, the Fund incurred brokerage commissions of
$95,216 with Morgan Stanley & Co., Inc., an affiliate of the Investment Manager,
Sub-Advisor and Distributor, for portfolio transactions executed on behalf of
the Fund.

For the year ended October 31, 2000, the Fund incurred brokerage commisions of
$5,970 with China International Capital Corp., an affiliate of the Investment
Manager, Sub-Advisor and Distributor, for portfolio transactions executed on
behalf of the Fund.

Morgan Stanley Dean Witter Trust FSB, an affiliate of the Investment Manager,
Sub-Advisor and Distributor, is the Fund's transfer agent. At October 31, 2000,
the Fund had transfer agent fees and expenses payable of approximately $18,400.

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 year ended October 31, 2000 included
in Directors' fees and expenses in the Statement of Operations, amounted to
$5,523. At October 31, 2000, the Fund had an accrued pension liability of
$45,151 which is included in accrued expenses in the Statement of Assets and
Liabilities.

22
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000, CONTINUED

5. FEDERAL INCOME TAX STATUS

During the year ended October 31, 2000, the Fund utilized approximately
$67,775,000 of its net capital loss carryover. At October 31, 2000, the Fund had
a net capital loss carryover of approximately $343,644,000, 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>
AMOUNTS IN THOUSANDS
-----------------------------
2005 2006 2007
------- -------- --------
<S> <C> <C>
$48,886 $268,352 $26,406
======= ======== =======
</TABLE>

As of October 31, 2000, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies
("PFICs") and capital loss deferrals on wash sales and permanent book/tax
differences primarily attributable to a net operating loss, foreign currency
losses and tax adjustments on PFICs sold by the Fund. To reflect
reclassifications arising from the permanent differences, paid-in-capital was
charged $7,658,736, accumulated net realized loss was charged $3,143,483 and
accumulated net investment loss was credited $10,802,219.

6. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS

The Fund may enter into 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 October 31, 2000, there were outstanding forward contracts.

At October 31, 2000, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's custodian.

At October 31, 2000, investments in securities of issuers in Japan represented
54.3% of the Fund's net assets. These investments, as well as other non-U.S.
investments, which involve risks and considerations not present with respect to
U.S. securities, may be affected by economic or political developments in this
region.

23
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2000, CONTINUED

7. CAPITAL STOCK

Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
OCTOBER 31, 2000 OCTOBER 31, 1999
--------------------------- --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 12,017,396 $ 189,622,563 11,093,708 $ 142,833,100
Reinvestment of dividends........................................ 4,138 68,076 -- --
Redeemed......................................................... (11,534,857) (184,941,797) (10,720,515) (138,982,563)
----------- ------------- ----------- -------------
Net increase - Class A........................................... 486,677 4,748,842 373,193 3,850,537
----------- ------------- ----------- -------------

CLASS B SHARES
Sold............................................................. 23,841,805 384,530,101 55,220,630 690,811,299
Reinvestment of dividends........................................ 76,028 1,243,053 -- --
Redeemed......................................................... (32,083,320) (516,523,498) (53,251,271) (659,859,432)
----------- ------------- ----------- -------------
Net increase (decrease) - Class B................................ (8,165,487) (130,750,344) 1,969,359 30,951,867
----------- ------------- ----------- -------------

CLASS C SHARES
Sold............................................................. 2,796,797 42,007,833 4,233,781 53,863,013
Reinvestment of dividends........................................ 3,538 57,670 -- --
Redeemed......................................................... (2,795,273) (42,280,357) (3,542,876) (45,346,907)
----------- ------------- ----------- -------------
Net increase (decrease) - Class C................................ 5,062 (214,854) 690,905 8,516,106
----------- ------------- ----------- -------------

CLASS D SHARES
Sold............................................................. 3,022,226 47,862,403 7,250,183 89,995,532
Reinvestment of dividends........................................ 326 5,384 -- --
Redeemed......................................................... (2,809,094) (44,334,134) (7,239,889) (90,868,938)
----------- ------------- ----------- -------------
Net increase (decrease) - Class D................................ 213,458 3,533,653 10,294 (873,406)
----------- ------------- ----------- -------------
Net increase (decrease) in Fund.................................. (7,460,290) $(122,682,703) 3,043,751 $ 42,445,104
=========== ============= =========== =============
</TABLE>

24
<PAGE>
MORGAN STANLEY 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 PERIOD
FOR THE YEAR ENDED OCTOBER 31 JULY 28, 1997*
-------------------------------------- THROUGH
2000 1999 1998 OCTOBER 31, 1997
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS A SHARES++

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $14.54 $ 9.76 $12.86 $19.39
------ ------ ------ ------

Income (loss) from investment operations:
Net investment income (loss)............................. (0.10) 0.05 0.10 --
Net realized and unrealized gain (loss).................. (1.02) 4.73 (2.94) (6.53)
------ ------ ------ ------

Total income (loss) from investment operations.............. (1.12) 4.78 (2.84) (6.53)
------ ------ ------ ------

Less dividends from net investment income................... (0.13) -- (0.26) --
------ ------ ------ ------

Net asset value, end of period.............................. $13.29 $14.54 $ 9.76 $12.86
====== ====== ====== ======

TOTAL RETURN+............................................... (8.10)% 48.98% (22.35)% (33.68)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.60 %(3) 1.79%(3) 1.90 %(3) 1.92 %(2)

Net investment income (loss)................................ (0.68)%(3) 0.34%(3) 0.89 %(3) (0.03)%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $15,646 $10,048 $3,102 $622

Portfolio turnover rate..................................... 37 % 128% 58 % 42 %
</TABLE>

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

* The date shares were first issued.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

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

<TABLE>
<CAPTION>
FOR THE YEAR ENDED OCTOBER 31
---------------------------------------------------------------------
2000++ 1999++ 1998++ 1997*++ 1996
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CLASS B SHARES

SELECTED PER SHARE DATA:

Net asset value, beginning of period.................. $14.39 $ 9.73 $12.83 $18.89 $18.77
------ ------ ------ ------ ------

Income (loss) from investment operations:
Net investment income (loss)....................... (0.23) (0.06) 0.01 0.01 0.05
Net realized and unrealized gain (loss)............ (1.02) 4.72 (2.92) (5.77) 0.50
------ ------ ------ ------ ------

Total income (loss) from investment operations (1.25) 4.66 (2.91) (5.76) 0.55
------ ------ ------ ------ ------

Less dividends from net investment income............. (0.03) -- (0.19) (0.30) (0.43)
------ ------ ------ ------ ------

Net asset value, end of period........................ $13.11 $14.39 $ 9.73 $12.83 $18.89
====== ====== ====== ====== ======

TOTAL RETURN+......................................... (8.86)% 47.89 % (22.87)% (31.01)% 3.00%

RATIOS TO AVERAGE NET ASSETS:
Expenses.............................................. 2.37 %(1) 2.56 %(1) 2.65 %(1) 2.44 % 2.39%

Net investment income (loss).......................... (1.45)%(1) (0.43)%(1) 0.14 %(1) 0.03 % 0.18%

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands............... $469,924 $633,216 $408,990 $744,133 $1,624,468

Portfolio turnover rate............................... 37 % 128 % 58 % 42 % 49%
</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.
+ Does not reflect the deduction of sales charge. Calculated based on the net
asset value as of the last business day of the period.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
(1) Reflects overall Fund ratios for investment income and non-class specific
expenses.

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

<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE YEAR ENDED OCTOBER 31 JULY 28, 1997*
------------------------------------ THROUGH
2000 1999 1998 OCTOBER 31, 1997
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CLASS C SHARES++

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $14.38 $ 9.72 $12.83 $19.39
------ ------ ------ ------

Income (loss) from investment operations:
Net investment income (loss)............................. (0.23) (0.05) 0.01 (0.04)
Net realized and unrealized gain (loss).................. (1.00) 4.71 (2.89) (6.52)
------ ------ ------ ------

Total income (loss) from investment operations.............. (1.23) 4.66 (2.88) (6.56)
------ ------ ------ ------

Less dividends from net investment income................... (0.08) -- (0.23) --
------ ------ ------ ------

Net asset value, end of period.............................. $13.07 $14.38 $ 9.72 $12.83
====== ====== ====== ======

TOTAL RETURN+............................................... (8.88)% 47.94 % (22.68)% (33.83)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 2.37 %(3) 2.56 %(3) 2.65 %(3) 2.62 %(2)

Net investment income (loss)................................ (1.45)%(3) (0.43)%(3) 0.14 %(3) (0.77)%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $11,219 $12,278 $1,581 $819

Portfolio turnover rate..................................... 37 % 128 % 58 % 42 %
</TABLE>

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

SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

SELECTED PER SHARE DATA:

Net asset value, beginning of period........................ $14.61 $ 9.78 $12.86 $19.39
------ ------ ------ ------

Income (loss) from investment operations:
Net investment income (loss)............................. (0.20) 0.06 0.07 0.02
Net realized and unrealized gain (loss).................. (0.91) 4.77 (2.88) (6.55)
------ ------ ------ ------

Total income (loss) from investment operations.............. (1.11) 4.83 (2.81) (6.53)
------ ------ ------ ------

Less dividends from net investment income................... (0.15) -- (0.27) --
------ ------ ------ ------

Net asset value, end of period.............................. $13.35 $14.61 $ 9.78 $12.86
====== ====== ====== ======

TOTAL RETURN+............................................... (7.94)% 49.39 % (22.14)% (33.68)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses.................................................... 1.37 %(3) 1.56 %(3) 1.65 %(3) 1.62 %(2)

Net investment income (loss)................................ (0.45)%(3) 0.57 %(3) 1.14 %(3) 0.42 %(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in thousands..................... $5,125 $2,489 $1,565 $118

Portfolio turnover rate..................................... 37 % 128 % 58 % 42 %
</TABLE>

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

* The date shares were first issued.
+ Calculated based on the net asset value as of the last business day of the
period.
++ The per share amounts were computed using an average number of shares
outstanding during the period.
(1) Not annualized.
(2) Annualized.
(3) Reflects overall Fund ratios for investment income and non-class specific
expenses.

SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
INDEPENDENT AUDITORS' REPORT

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.

We have audited the accompanying statement of assets and liabilities of Morgan
Stanley Dean Witter Pacific Growth Fund Inc. (the "Fund"), including the
portfolio of investments, as of October 31, 2000, and the related statements of
operations and changes in net assets, and the financial highlights for the year
then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit. The statement of changes in net assets for the year ended October 31,
1999 and the financial highlights for each of the respective stated periods
ended October 31, 1999 were audited by other independent accountants whose
report, dated December 20, 1999, expressed an unqualified opinion on that
statement and financial highlights.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2000, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Morgan
Stanley Dean Witter Pacific Growth Fund Inc. as of October 31, 2000, the results
of its operations, the changes in its net assets, and the financial highlights
for the year then ended, in conformity with accounting principles generally
accepted in the United States of America.

Deloitte & Touche LLP
NEW YORK, NEW YORK
DECEMBER 20, 2000

2000 FEDERAL TAX NOTICE (UNAUDITED)
For its fiscal year ended October 31, 2000 the Fund has elected,
pursuant to Section 853 of the Internal Revenue Code, to pass
through foreign taxes of $0.05 per share to its shareholders, of
which 100% would be allowable as a credit. The Fund generated net
foreign source income of $0.04 per share with respect to this
election. These amounts were previously reflected in the Fund's
1999 Form 1099-DIVs.

29
<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
CHANGE IN INDEPENDENT ACCOUNTANTS

On July 1, 2000 PricewaterhouseCoopers LLP resigned as independent accountants
of the Fund.

The reports of PricewaterhouseCoopers LLP on the financial statements of the
Fund for the past two fiscal years contained no adverse opinion or disclaimer of
opinion and were not qualified or modified as to uncertainty, audit scope or
accounting principle.

In connection with its audits for the two most recent fiscal years and through
July 1, 2000, there have been no disagreements with PricewaterhouseCoopers LLP
on any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which disagreements if not resolved
to the satisfaction of PricewaterhouseCoopers LLP would have caused them to make
reference thereto in their report on the financial statements for such years.

The Fund, with the approval of its Board of Directors and its Audit Committee,
engaged Deloitte & Touche LLP as its new independent auditors as of July 1,
2000.

<PAGE>

DIRECTORS

Michael Bozic

Charles A. Fiumefreddo

Edwin J. Garn

Wayne E. Hedien

James F. Higgins

Dr. Manuel H. Johnson

Michael E. Nugent

Philip J. Purcell

John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

Mitchell M. Merin
President

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 AUDITORS

Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281

INVESTMENT MANAGER

Morgan Stanley Dean Witter Advisors Inc.
Two World Trade Center
New York, New York 10048

SUB-ADVISOR

Morgan Stanley Dean Witter
Investment Management Inc.
1221 Avenue of the Americas
New York, New York 10020

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 prospective investors in
the Fund unless preceded or accompanied by an effective prospectus. Read the
prospectus carefully before investing.

Morgan Stanley Dean Witter Distributors Inc., member NASD.

MORGAN STANLEY
DEAN WITTER
PACIFIC
GROWTH FUND

[ARTWORK]

ANNUAL REPORT
OCTOBER 31, 2000