MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC, N-30D, 2000-06-27

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC
N-30D, 2000-06-27

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<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC. TWO WORLD TRADE CENTER,
LETTER TO THE SHAREHOLDERS APRIL 30, 2000 NEW YORK, NEW YORK 10048

DEAR SHAREHOLDER:

Asian stock markets performed well during the six-month period ended April 30,
2000, as the positive economic conditions experienced by emerging Asian
countries in 1999 continued into 2000. Asia is likely to post reasonable trade
surpluses in 2000 for the third consecutive year as exports continue to grow,
aided by long-term trends in the outsourcing of semiconductor, computer and
telecommunications equipment manufacturing.

With the overall consumer sentiment positive, Asia's export-led recovery is
being supplemented by growth in domestic consumption. Economic and earnings
growth numbers are surprising on the upside, especially in North Asian
economies, and the consensus overall growth outlook for 2000 has been upgraded.
Earnings growth is driving the current Asian growth phase as restructuring by
large corporations and the adoption of new technologies is propelling returns on
equity to a higher level than has been seen in the past decade.

PERFORMANCE AND PORTFOLIO

For the six-month period ended April 30, 2000, Morgan Stanley Dean Witter
Pacific Growth Fund's Class B shares posted a total return of 13.56 percent,
compared to 7.49 percent for the Morgan Stanley Capital International (MSCI)
World Index.* For the same period, the Fund's Class A, C and D shares posted
total returns of 14.08 percent, 13.62 percent and 14.16 percent, respectively.
The performance of the Fund's four share classes varies because each class 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 Morgan Stanley Capital International World Index measures performance from
a diverse range of global stock markets, including the U.S., Europe, Australia,
New Zealand and the Far East. 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 take into account
the Fund's expenses, fees or charges. The index is unmanaged and should not be
considered an investment.

<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 2000, CONTINUED

JAPAN

The Japanese market advanced modestly during the period, supported by strong
corporate restructuring initiatives, government initiatives to support the
banking system and small companies, and positive GDP growth surprises. Strong
stock selection in Japan, the Fund's largest country weighting, has recently
contributed to the Fund's outperformance.

Morgan Stanley Dean Witter Investment Management Inc., the Fund's sub-advisor,
does not expect the recent change in leadership in Japan to result in
significant changes in government policy, because the self-sustaining economic
recovery will likely continue to be the key focus for the Japanese government.
The Bank of Japan's Tankan Report, released in April, confirmed an improving
economy, particularly in its capital and investment spending survey, and
evidence is beginning to mount for very strong GDP numbers for the first quarter
of 2000.

SOUTH KOREA

The South Korean market underperformed the broader Asian markets during the
period, after hitting a high in mid 1999. Part of its weak performance stemmed
from the huge amounts of domestic retail money flowing into the technology-heavy
Kosdaq market -- which added more than $75 billion of market cap over the last
12 months -- and out of the Kospi, the main stock market. In addition, concerns
about inflation, uncertainty leading up to April's parliamentary elections, and
potential problems at investment trusts caused investor skittishness.

Nevertheless, the economic fundamentals in South Korea remain very robust, with
mainboard South Korean companies offering the most attractive valuations in the
region relative to underlying growth in operating earnings. The Fund continues
to overweight the South Korean market as corporations there become more profit
focused, moving away from their previous emphasis on revenue.

HONG KONG

The Hong Kong market showed unexpected strength during the period as it managed
to decouple itself from rising U.S. interest rates at the beginning of 2000. The
market was buoyed by GDP growth of 8.7 percent for the fourth quarter of 1999.
Although it continued to do well in the first quarter of 2000, the market's
breadth was narrow, because of the predominance of the news focusing on
telecommunications and media stocks. Equities in Hong Kong have recently been
weighed down by the renewal of mainland China's military posturing in the Taiwan
Strait. However, the Hong Kong market should continue to be supported by a
rising return on equity, an increasingly international

2
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 2000, CONTINUED

market, declining unemployment and improving consumer sentiment. The sub-advisor
believes Hong Kong should see significant upgrades on its growth estimates for
2000. In the recently released budget, the government prudently did not raise or
introduce any taxes.

TAIWAN

Taiwan was one of the region's better-performing large markets during the
period, despite heightened investor nervousness concerning strained relations
with China and volatility in the Nasdaq. In March, Taiwanese voters elected the
Democratic Progressive Party candidate, Chen Shui Bian, to the presidency,
ending 55 years of Nationalist Kuomintang rule. The Fund's sub-advisor views
this outcome as extremely positive for the long term. Chen has delivered a
cordial, conciliatory message to China expressing eagerness to engage in
constructive dialogue to ease cross-strait tensions.

The underlying fundamentals of the Taiwanese economy remained strong, with most
companies announcing first-quarter results ahead of consensus estimates.
Liquidity conditions have been benign, and the New Taiwan dollar has been
appreciating steadily. Export-oriented technology stocks continued to outperform
while domestic demand-related companies and banks underperformed, because of
investors' worries that the ousted Kuomintang party might seek to liquidate its
stock-market-related assets. The Fund continues to be overweighted in large-cap
Taiwanese technology stocks. Not only are these companies among the best-managed
in Asia but most of them also have very strong long-term earnings growth and are
not subject to speculative valuations.

AUSTRALIA

Australian commodity stocks faced severe selling pressure at the beginning of
the year as investors locked in profits and rotated into technology and media
companies. Global commodity prices have been muted as a result of weakness in
gold, bulk minerals and agriculture. After becoming quite expensive in mid 1999,
resources stocks are beginning to look attractively valued. Should this trend
continue, the sub-advisor might be inclined to increase the Fund's positions in
some top-tier resources issues.

SINGAPORE

After a strong performance in 1999, the Singapore stock market underperformed
other Asian markets in the first quarter of 2000. Most international investors
were already overweighted in this market and valuations for the overall market
were looking stretched at the beginning of the year. Singapore's

3
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
LETTER TO THE SHAREHOLDERS APRIL 30, 2000, CONTINUED

weighting will suffer a relative decline following changes planned for the MSCI
indexes during the second quarter of this year reflecting Malaysia's re-entry
and increased weightings for Taiwan and China. Recently, equities in Singapore
have been buoyed by strong signals on global and regional electronics demand
from the U.S. and north Asia as well as government support of market-opening
policies to encourage greater foreign investment. The sub-advisor believes that
the newly listed semiconductor sector is likely to show strong growth in coming
years.

LOOKING AHEAD

The Fund's sub-advisor continues to believe we will see evidence of a long-term
recovery in Japan beginning in the second half of 2000. Consequently, quality
economically sensitive and value-oriented stocks should benefit from increasing
investor interest in the coming months. The sub-advisor also believes that the
outlook for non-Japan Asia continues to be positive, because the region
continues to benefit from a robust upturn in economic growth and export
strength. While the risks from a volatile U.S. market and further Fed
tightenings are well known, Asia may weather that trend much better than current
expectations would suggest.

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,

<TABLE>
<S> <C>
/s/ Charles A. Fiumefreddo /s/ Mitchell M. Merin
CHARLES A. FIUMEFREDDO MITCHELL M. MERIN
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>

4
<PAGE>

MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FUND PERFORMANCE APRIL 30, 2000

<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURNS
-----------------------------------------------------------------------------------------------------------
CLASS A SHARES* CLASS B SHARES**
--------------------------------------------------- ---------------------------------------------------
PERIOD ENDED 4/30/00 PERIOD ENDED 4/30/00
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 34.53%(1) 27.47%(2) 1 Year 33.40%(1) 28.40%(2)
Since Inception (7/28/97) (4.72)(1) (6.56)(2) 5 Year (0.33)(1) (0.70)(2)
Since Inception
(11/30/90) 6.91 (1) 6.91 (2)
</TABLE>

<TABLE>
<CAPTION>
CLASS C SHARES+ CLASS D SHARES++
------------------------------------------------ ---------------------------------------------------
PERIOD ENDED 4/30/00 PERIOD ENDED 4/30/00
------------------------- -------------------------
<S> <C> <C> <C> <C> <C>
1 Year 33.49%(1) 32.49%(2) 1 Year 34.73%(1)
Since Inception (7/28/97) (5.33)(1) (5.33)(2) Since Inception (7/28/97) (4.50)(1)
</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
MORE OR LESS THAN THEIR ORIGINAL COST.

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

(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.
* 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 CDSC 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 APRIL 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS, BONDS AND RIGHTS (97.8%)
AUSTRALIA (6.5%)
AIRLINES
746,000 Quantas Airways Ltd............................................................. $ 1,596,970
------------
ALCOHOLIC BEVERAGES
719,800 Foster's Brewing Group Ltd...................................................... 1,816,312
------------
DIVERSIFIED COMMERCIAL SERVICES
60,650 Brambles Industries, Ltd........................................................ 1,705,178
------------
ELECTRONIC COMPONENTS
211,450 Solution 6 Holdings Ltd......................................................... 646,419
------------
INTERNATIONAL BANKS
108,750 Commonwealth Bank of Australia.................................................. 1,654,356
270,350 National Australia Bank Ltd..................................................... 3,699,528
441,950 Westpac Banking Corp., Ltd...................................................... 2,817,639
------------
8,171,523
------------
MEDIA CONGLOMERATES
706,850 News Corporation Ltd............................................................ 8,965,998
------------
MEDICAL/NURSING SERVICES
171,250 Sonic Healthcare Ltd............................................................ 569,374
------------
MULTI-SECTOR COMPANIES
460,150 Broken Hill Proprietary Co., Ltd................................................ 4,949,397
------------
OFFICE/PLANT AUTOMATION
186,200 E.R.G. Ltd...................................................................... 885,175
------------
OTHER METALS/MINERALS
339,000 Rio Tinto Ltd................................................................... 5,029,879
------------
OTHER PHARMACEUTICALS
93,400 CSL Limited..................................................................... 1,122,293
------------
OTHER TELECOMMUNICATIONS
474,050 Aapt Ltd.*...................................................................... 1,894,117
598,500 Davnet Limited.................................................................. 855,307
300,500 Macquarie Corporate Telecommunications Holdings Limited*........................ 438,204
732,950 Telstra Corp. Ltd............................................................... 3,138,068
559,500 Telstra Corporation Ltd......................................................... 1,429,441
------------
7,755,137
------------
PRECIOUS METALS
1,466,200 Normandy Mining Ltd............................................................. 726,949
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
REAL ESTATE
149,200 Lend Lease Corporation Ltd...................................................... $ 1,614,898
------------

TOTAL AUSTRALIA................................................................. 45,555,502
------------

CHINA (0.3%)
ELECTRONIC COMPONENTS
2,218,000 Great Wall Technology Co........................................................ 1,850,920
------------
MUTUAL FUNDS
100,000 Investment Co. of
China * **.................................................................... 561,000
------------

TOTAL CHINA..................................................................... 2,411,920
------------

HONG KONG (11.0%)
AIRLINES
1,276,000 Cathay Pacific Airways, Ltd..................................................... 2,268,889
------------
BANKING
189,100 Hang Seng Bank Ltd.............................................................. 1,735,842
------------
BROADCASTING
323,600 Television Broadcasts Ltd....................................................... 2,212,284
------------
CELLULAR TELEPHONE
859,900 China Telecom Ltd.*............................................................. 6,154,681
159,000 SmarTone Telecommunications Holdings Ltd........................................ 498,081
------------
6,652,762
------------
CONSUMER ELECTRONICS/APPLIANCES
1,562,000 TCL International Holdings Ltd.*................................................ 942,522
------------
DIVERSIFIED MANUFACTURING
229,100 Johnson Electric Holdings Ltd................................................... 1,808,893
------------
ELECTRONIC DATA PROCESSING
1,296,000 Legend Holdings Ltd............................................................. 1,497,477
------------
ELECTRONIC PRODUCTION EQUIPMENT
292,000 ASM Pacific Technology Ltd...................................................... 1,034,677
------------
HOTELS/RESORTS
5,255,000 Sino-i.com Ltd.................................................................. 344,077
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

TOTAL HONG KONG................................................................. 77,637,528
------------
INDIA (6.4%)
ALUMINUM
78,250 Hindalco Industries Ltd......................................................... 1,262,386
------------
BUILDING MATERIALS
153,000 Gujarat Ambuja Cements Ltd...................................................... 699,879
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
COMPUTER SOFTWARE
81,000 Aptech Ltd...................................................................... $ 4,905,254
20,100 Leading Edge Systems Ltd........................................................ 390,961
25,500 NIIT Ltd........................................................................ 1,190,389
27,644 PSI Data Systems Ltd............................................................ 650,931
6,800 Ramco Systems*.................................................................. 295,146
134,800 Software Solution Integrated Ltd................................................ 8,188,252
------------
15,620,933
------------
CONSTRUCTION/AGRICULTURAL EQUIPMENT/TRUCKS
153,500 Escorts Ltd..................................................................... 449,611
223,000 Larsen & Toubro Ltd............................................................. 1,191,545
41,900 Punjab Tractors Ltd............................................................. 616,515
------------
2,257,671
------------
DIVERSIFIED COMMERCIAL SERVICES
38,300 ASE Test Ltd. (ADR)............................................................. 1,132,244
------------
DIVERSIFIED ELECTRONIC PRODUCTS
200 Satyam Computer Service Ltd..................................................... 14,279
------------
DIVERSIFIED MANUFACTURING
82,307 Grasim Industries Ltd........................................................... 678,044
27,693 Grasim Industries Ltd. (Bonus Shares)*.......................................... 223,859
6,800 Ramco Industries Ltd............................................................ 36,567
------------
938,470
------------
E.D.P. SERVICES
41,750 HCL Technologies Ltd.*.......................................................... 1,538,158
19,036 Infosys Technologies Ltd........................................................ 3,528,412
------------
5,066,570
------------
ELECTRIC UTILITIES
221,000 BSES Ltd........................................................................ 1,320,437
------------
ELECTRICAL PRODUCTS
337,983 Bharat Heavy Electricals Ltd.................................................... 775,737
102,000 Sterlite Industries Ltd......................................................... 1,730,732
------------
2,506,469
------------
ELECTRONIC DATA PROCESSING
85,100 Digital Equipment (India) Ltd................................................... 1,174,263
------------
GENERIC DRUGS
43,600 Dr. Reddy's Laboratories Ltd.................................................... 1,287,048
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INTERNATIONAL BANKS
259,250 Corporation Bank................................................................ $ 402,223
------------
MOTOR VEHICLES
46,000 Hero Honda Motors Ltd........................................................... 976,842
------------
MOVIES/ENTERTAINMENT
81,500 Zee Telefilms Ltd............................................................... 1,324,142
------------
MULTI-SECTOR COMPANIES
24,388 Wipro Ltd....................................................................... 1,858,762
------------
NATURAL GAS
464,961 Gas Authority of India Ltd...................................................... 585,191
110,000 Gas Authority of India Ltd. (GDR)............................................... 701,250
------------
1,286,441
------------
OTHER PHARMACEUTICALS
53,250 Ranbaxy Laboratories Ltd........................................................ 751,714
------------
OTHER TELECOMMUNICATIONS
269,000 Mahanagar Telephone Nigam Ltd................................................... 1,385,319
68,307 Videsh Sanchar Nigam Ltd........................................................ 2,078,909
------------
3,464,228
------------
PACKAGE GOODS/COSMETICS
55,000 Reckitt & Coleman of India Ltd.................................................. 260,967
------------
TOBACCO
109,100 ITC Ltd......................................................................... 1,423,043
------------
TOTAL INDIA..................................................................... 45,029,011
------------
INDONESIA (0.4%)
BUILDING MATERIALS
61,100 PT Semen Gresik (Persero)....................................................... 63,021
------------
MUTUAL FUNDS
2,500,000 Batavia Investment Fund Ltd.*................................................... 488,750
------------
TELECOMMUNICATIONS
184,032 PT Telekomunikasi Indonesia (ADR)............................................... 1,587,276
------------
TOBACCO
247,500 Pt Gudang Garam Tbk............................................................. 389,151
------------
TOTAL INDONESIA................................................................. 2,528,198
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>

JAPAN (48.3%)
BANKING
100,000 Bank of Tokyo-Mitsubishi, Ltd................................................... $ 1,288,236
------------
BUILDING PRODUCTS
546,000 Sanwa Shutter Corp.............................................................. 1,518,769
JPY 80,000K Sanwa Shutter Corp. 0.90% due 03/31/06 (Conv.).................................. 726,735
------------
2,245,504
------------
CONSUMER ELECTRONICS/APPLIANCES
176,300 Aiwa Co., Ltd................................................................... 2,460,152
159,500 Rinnai Corp..................................................................... 2,918,492
70,100 Sony Corp....................................................................... 8,039,377
70,100 Sony Corp. (New)................................................................ 8,097,680
------------
21,515,701
------------
CONSUMER SPECIALTIES
475,000 Casio Computer Co., Ltd......................................................... 5,223,639
------------
DIVERSIFIED ELECTRONIC PRODUCTS
703,000 Hitachi Ltd..................................................................... 8,380,649
59,300 Kyocera Corp.................................................................... 9,902,514
382,000 Matsushita Electric Industrial Co., Ltd......................................... 10,096,294
536,000 NEC Corp........................................................................ 14,562,795
1,164,000 Toshiba Corp.................................................................... 11,273,191
------------
54,215,443
------------
E.D.P. PERIPHERALS
267,000 Mitsumi Electric Co., Ltd....................................................... 11,004,713
------------
ELECTRICAL PRODUCTS
235,000 Furukawa Electric Co............................................................ 3,255,383
------------
ELECTRONIC COMPONENTS
84,000 TDK Corp........................................................................ 11,232,603
------------
ELECTRONIC DATA PROCESSING
430,000 Fujitsu Ltd..................................................................... 12,159,690
------------
ELECTRONIC DISTRIBUTORS
143,000 Ryosan Co., Ltd................................................................. 2,497,643
------------
ENGINEERING & CONSTRUCTION
60,000 Kyudenko Co., Ltd............................................................... 153,590
------------
FINANCE COMPANIES
314,000 Hitachi Credit Corp............................................................. 6,325,848
------------
FOOD CHAINS
101,900 FamilyMart Co., Ltd............................................................. 3,729,082
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
HOME BUILDING
705,000 Sekisui Chemical Co., Ltd....................................................... $ 2,579,983
514,000 Sekisui House Ltd............................................................... 4,702,523
------------
7,282,506
------------
HOME FURNISHINGS
46,000 Sangetsu Co., Ltd............................................................... 799,187
------------
INDUSTRIAL MACHINERY/COMPONENTS
594,000 Amada Co., Ltd.................................................................. 5,401,497
572,000 Daifuku Co., Ltd................................................................ 5,640,181
422,000 Daikin Industries, Ltd.......................................................... 8,014,139
144,000 Fuji Machine Manufacturing Co., Ltd............................................. 9,993,901
425,000 Minebea Co., Ltd................................................................ 5,184,364
1,247,000 Mitsubishi Heavy Industries Ltd................................................. 3,872,027
666,000 Tsubakimoto Chain Co............................................................ 3,151,206
------------
41,257,315
------------
INDUSTRIAL SPECIALTIES
326,000 Fujitec Co., Ltd................................................................ 3,259,699
336,000 Lintec Corp..................................................................... 3,508,733
------------
6,768,432
------------
MAJOR PHARMACEUTICALS
308,000 Sankyo Co., Ltd................................................................. 6,774,235
------------
MARINE TRANSPORTATION
203,000 Mitsubishi Logistics Corp....................................................... 1,744,663
------------
MEAT/POULTRY/FISH
250,000 Nippon Meat Packers, Inc........................................................ 3,153,590
------------
MOTOR VEHICLES
1,129,000 Nissan Motor Co., Ltd........................................................... 5,122,808
338,000 Suzuki Motor Corp............................................................... 5,025,802
158,000 Toyota Motor Corp............................................................... 7,840,865
------------
17,989,475
------------
OFFICE EQUIPMENT/SUPPLIES
243,000 Canon, Inc...................................................................... 11,093,429
538,000 Ricoh Co., Ltd.................................................................. 11,335,736
------------
22,429,165
------------
OTHER PHARMACEUTICALS
173,000 Ono Pharmaceutical Co., Ltd..................................................... 7,274,281
174,000 Yamanouchi Pharmaceutical Co., Ltd.............................................. 9,181,591
------------
16,455,872
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
PHOTOGRAPHIC PRODUCTS
209,000 Fuji Photo Film Co., Ltd........................................................ $ 8,363,090
------------
POLLUTION CONTROL EQUIPMENT
238,000 Kurita Water Industries Ltd..................................................... 5,179,651
------------
PRINTING/FORMS
302,000 Dai Nippon Printing Co., Ltd.................................................... 5,115,664
147,000 Nissha Printing Co., Ltd........................................................ 910,175
------------
6,025,839
------------
REAL ESTATE
700 Chubu Sekiwa Real Estate, Ltd................................................... 3,687
354,000 Mitsubishi Estate Co., Ltd...................................................... 3,974,771
------------
3,978,458
------------
RECREATIONAL PRODUCTS/TOYS
71,400 Nintendo Co., Ltd............................................................... 11,876,906
338,000 Yamaha Corp..................................................................... 2,286,443
------------
14,163,349
------------
SEMICONDUCTORS
26,000 Rohm Co., Ltd................................................................... 8,697,902
------------
SPECIALTY CHEMICALS
934,000 Daicel Chemical Industries, Ltd................................................. 2,856,982
657,000 Kaneka Corp..................................................................... 8,439,423
762,000 Mitsubishi Chemical Corp........................................................ 3,049,127
262,000 NIFCO Inc....................................................................... 2,857,037
415,000 Shin-Etsu Polymer Co., Ltd...................................................... 2,726,781
------------
19,929,350
------------
SPECIALTY FOODS/CANDY
120,000 House Foods Corp................................................................ 1,729,970
------------
TELECOMMUNICATIONS
750 Nippon Telegraph & Telephone Corp............................................... 9,287,497
------------
UTILITIES
140,000 Tokyo Electric Power Co., Ltd................................................... 3,299,141
------------
WHOLESALE DISTRIBUTORS
86,000 Nissei Sangyo Co., Ltd.......................................................... 966,417
------------

TOTAL JAPAN..................................................................... 341,122,179
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MALAYSIA (2.7%)
ALCOHOLIC BEVERAGES
519,000 Carlsberg Brewery (Malaysia) Berhad............................................. $ 1,775,386
------------
CASINO/GAMBLING
851,000 Tanjong PLC..................................................................... 2,351,262
------------
INTERNATIONAL BANKS
1,052,000 Malayan Banking Berhad.......................................................... 4,373,760
3,686,000 Public Bank Berhad.............................................................. 3,840,897
------------
8,214,657
------------
TELECOMMUNICATIONS
676,000 Telekom Malaysia Berhad......................................................... 2,348,025
------------
TOBACCO
526,200 Rothmans of Pall Mall (Malaysia) Berhad......................................... 4,084,651
------------

TOTAL MALAYSIA.................................................................. 18,773,981
------------

NEW ZEALAND (0.3%)
TELECOMMUNICATIONS
537,000 Telecom Corporation of New Zealand Ltd.......................................... 2,265,871
------------

PHILIPPINES (0.1%)
BROADCASTING
524,400 ABS-CBN Broadcasting Corp.*..................................................... 622,019
------------
SINGAPORE (4.8%)
AIRLINES
368,000 Singapore Airlines Ltd.......................................................... 3,814,030
------------
DIVERSIFIED COMMERCIAL SERVICES
403,000 St Assembly Test Services Ltd.*................................................. 1,699,028
------------
DIVERSIFIED ELECTRONIC PRODUCTS
435,900 Natsteel Electronics Ltd........................................................ 2,501,358
------------
DIVERSIFIED MANUFACTURING
488,000 Omni Industries Ltd............................................................. 954,397
------------
ELECTRONIC COMPONENTS
209,100 Venture Manufacturing Ltd....................................................... 2,448,764
------------
INTERNATIONAL BANKS
517,244 DBS Group Holdings Ltd.......................................................... 7,117,481
499,310 Overseas-Chinese Banking Corp. Ltd.............................................. 3,420,733
292,104 Overseas Union Bank Ltd......................................................... 1,334,121
------------
11,872,335
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
MARINE TRANSPORTATION
565,000 Neptune Orient Lines Ltd........................................................ $ 506,178
307,600 Sembcorp Logistics Ltd.......................................................... 1,909,217
------------
2,415,395
------------
NEWSPAPERS
262,099 Singapore Press Holdings Ltd.................................................... 5,125,955
------------
REAL ESTATE
244,400 City Developments, Ltd.......................................................... 1,109,088
------------
SEMICONDUCTORS
264,000 Chartered Semiconductor Manufacturing*.......................................... 2,272,397
------------

TOTAL SINGAPORE................................................................. 34,212,747
------------

SOUTH KOREA (7.8%)
ADVERTISING
13,460 Cheil Communications Inc........................................................ 1,412,694
------------
CATALOG/SPECIALTY DISTRIBUTION
9,890 LG Home Shopping Inc............................................................ 787,636
------------
CELLULAR TELEPHONE
41,555 Pantech Co., Ltd................................................................ 598,991
184,800 SK Telecom Co., Ltd. (ADR)...................................................... 5,925,150
77,990 Telson Electronics Co., Ltd..................................................... 1,117,154
------------
7,641,295
------------
COMPUTER COMMUNICATIONS
1,749 Insung Information.............................................................. 29,308
9,290 Korealink Co., Ltd.*............................................................ 510,532
------------
539,840
------------
COMPUTER SOFTWARE
1,439 Daeduck Electronics Co.......................................................... 12,575
------------
CONSUMER ELECTRONICS/APPLIANCES
76,160 Humax Co., Ltd.................................................................. 1,224,735
------------
DEPARTMENT STORES
18,220 39SHOPPING Corp................................................................. 666,425
------------
DIVERSIFIED ELECTRONIC PRODUCTS
4,030 LG Information & Communication Ltd.............................................. 310,419
89,339 Samsung Electronics Co.......................................................... 24,145,676
------------
24,456,095
------------
ELECTRIC UTILITIES
193,500 Korea Electric Power Corp. (ADR)................................................ 3,168,562
------------
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

<TABLE>
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ELECTRICAL PRODUCTS
80,598 Prochips Technology Inc......................................................... $ 391,373
------------
ELECTRONIC COMPONENTS
35,428 Samsung Electro-Mechanics Co.................................................... 2,409,742
------------
INTERNATIONAL BANKS
82,090 Hana Bank....................................................................... 438,553
86,508 Housing & Commercial Bank, Korea................................................ 1,480,768
166,076 Kookmin Bank.................................................................... 1,795,416
107,210 Shinhan Bank.................................................................... 1,028,636
------------
4,743,373
------------
INVESTMENT BANKERS/BROKERS/SERVICES
36,183 Dongwon Securities Co........................................................... 361,830
13,783 Dongwon Securities Co. (Rights)................................................. --
41,480 Samsung Securities Co., Ltd..................................................... 698,807
------------
1,060,637
------------
OIL REFINING/MARKETING
36,680 SK Corp......................................................................... 692,294
------------
OTHER TELECOMMUNICATIONS
26,235 Korea Telecom Corp. (ADR)....................................................... 905,107
6,270 Locus Corp...................................................................... 762,568
------------
1,667,675
------------
SEMICONDUCTORS
29,554 Hyundai Electronics Industries Co............................................... 468,604
------------
SPECIALTY FOODS/CANDY
17,866 Cheil Jedang Corp............................................................... 917,443
26,380 Tong Yang Confectionery Co...................................................... 629,793
------------
1,547,236
------------
STEEL/IRON ORE
86,200 Pohang Iron & Steel Co., Ltd. (ADR)............................................. 1,810,200
------------
TELECOMMUNICATION EQUIPMENT
60,150 Communication Network Interface Inc............................................. 544,601
------------

TOTAL SOUTH KOREA............................................................... 55,245,592
------------

TAIWAN (8.1%)
COMPUTER COMMUNICATIONS
124,000 Accton Technology Corp.......................................................... 311,314
------------
<CAPTION>
SHARES/PRINCIPAL
AMOUNT VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
DIVERSIFIED ELECTRONIC PRODUCTS
418,000 Delta Electronics, Inc.......................................................... $ 2,071,601
------------
E.D.P. PERIPHERALS
362,040 Acer Peripherals Inc............................................................ 1,493,253
69,000 Ambit Microsystems Corp......................................................... 636,681
397,400 Hon Hai Precison Industry Co.................................................... 3,822,400
78,000 Ritek Corp...................................................................... 742,615
------------
6,694,949
------------
ELECTRONIC COMPONENTS
107,000 Compeq Manufacturing Co., Ltd................................................... 589,599
174,000 Universal Scientific Industrial Co., Ltd........................................ 658,102
------------
1,247,701
------------
ELECTRONIC DATA PROCESSING
1,188,000 Acer Inc.*...................................................................... 2,479,035
128,000 Advantech Co., Ltd.*............................................................ 1,035,018
434,578 Asustek Computer Inc............................................................ 4,803,454
575,004 Compal Electronics.............................................................. 1,471,436
190,000 Microelectronics Technology, Inc................................................ 882,784
------------
10,671,727
------------
ELECTRONIC PRODUCTION EQUIPMENT
2,219,173 Taiwan Semiconductor Manufacturing Co........................................... 14,254,225
------------
FOOD CHAINS
279,000 President Chain Store Corp...................................................... 991,555
------------
INTERNATIONAL BANKS
1,075,200 China Trust Commercial Bank..................................................... 886,944
1,429,000 Taishin International Bank...................................................... 740,825
795,000 United World Chinese Commercial Bank............................................ 782,817
------------
2,410,586
------------
INTERNET SERVICES
11,600 GigaMedia Ltd................................................................... 278,400
------------
SEMICONDUCTORS
493,000 Advanced Semiconductor Engineering Inc.......................................... 1,575,285
427,000 Macronix International Co., Ltd................................................. 1,287,822
764,323 Siliconware Precision Industries Co............................................. 1,732,000
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

TOTAL TAIWAN.................................................................... 57,443,955
------------

THAILAND (1.1%)
BUILDING MATERIALS
200,433 Siam City Cement Co. PCL........................................................ 604,823
------------
CELLULAR TELEPHONE
190,200 Advanced Info Service PCL....................................................... 2,225,904
------------
ELECTRONIC COMPONENTS
156,975 Delta Electronics (Thailand) Public Co., Ltd.................................... 1,622,885
15,697 Delta Electronics, Inc. (Rights)*............................................... 58,488
------------
1,681,373
------------
INTERNATIONAL BANKS
1,319,300 Thai Farmers Bank PCL........................................................... 1,384,728
------------
MOVIES/ENTERTAINMENT
173,300 BEC World PCL................................................................... 1,145,936
------------
REAL ESTATE
2,168,600 Golden Land Property Development Company Ltd.................................... 466,610
------------

TOTAL THAILAND.................................................................. 7,509,374
------------

TOTAL COMMON STOCKS, BONDS AND RIGHTS
(IDENTIFIED COST $516,775,806).................................................. 690,357,877
------------
</TABLE>

<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT IN
THOUSANDS VALUE
----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
SHORT-TERM INVESTMENTS (a) (0.7%)
COMMERCIAL PAPER
DIVERSIFIED FINANCIAL SERVICES
$ 350 General Electric Capital Corp. 6.03% due 06/08/00............................... $ 347,772
------------

U.S. GOVERNMENT AGENCY
4,500 Federal Home Loan Mortgage Corp. 5.88% due 05/01/00............................. 4,500,000
------------

TOTAL SHORT-TERM INVESTMENTS
(AMORTIZED COST $4,847,772)..................................................... 4,847,772
------------
</TABLE>

<TABLE>
<S> <C> <C>
TOTAL INVESTMENTS
(IDENTIFIED COST $521,623,578) (b)........................................................ 98.5% 695,205,649

OTHER ASSETS IN EXCESS OF LIABILITIES..................................................... 1.5 10,619,532
----- -------------

NET ASSETS................................................................................ 100.0% $ 705,825,181
----- -------------
----- -------------
</TABLE>

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

ADR American Depository Receipt.
GDR Global Depository Receipt.
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 rates shown have been adjusted
to reflect a money market equivalent yield.
(b) The aggregate cost for federal income tax purposes approximates identified
cost. The aggregate gross unrealized appreciation is $206,927,114 and the
aggregate gross unrealized depreciation is $33,345,043, resulting in net
unrealized appreciation $173,582,071.

SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

FORWARD FOREIGN CURRENCY CONTRACTS OPEN AT APRIL 30, 2000

<TABLE>
<CAPTION>
UNREALIZED
CONTRACTS IN EXCHANGE DELIVERY APPRECIATION/
TO RECEIVE FOR DATE DEPRECIATION
----------------------------------------------------
<S> <C> <C> <C>
AUD 64,689 $38,218 05/01/00 $485
AUD 33,424 $19,747 05/02/00 $251
HKD 703,939 $90,373 05/02/00 $ (2)
----
Net unrealized appreciation.... $734
====
</TABLE>

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

<TABLE>
<S> <C>
AUD Australian Dollar.
HKD Hong Kong Dollar.
JPY Japanese Yen.
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
SUMMARY OF INVESTMENTS APRIL 30, 2000 (UNAUDITED)

<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Advertising....................................................................... $ 1,412,694 0.2%
Airlines.......................................................................... 7,679,889 1.1
Alcoholic Beverages............................................................... 3,591,698 0.5
Aluminum.......................................................................... 1,262,386 0.2
Banking........................................................................... 3,024,078 0.4
Broadcasting...................................................................... 2,834,303 0.4
Building Materials................................................................ 1,367,723 0.2
Building Products................................................................. 2,245,504 0.3
Casino/Gambling................................................................... 2,351,262 0.3
Catalog/Specialty Distribution.................................................... 787,636 0.1
Cellular Telephone................................................................ 16,519,961 2.3
Computer Communications........................................................... 851,153 0.1
Computer Software................................................................. 15,633,508 2.2
Construction/Agricultural Equipment/Trucks........................................ 2,257,670 0.3
Consumer Electronics/Appliances................................................... 23,682,958 3.4
Consumer Specialties.............................................................. 5,223,639 0.7
Department Stores................................................................. 666,425 0.1
Diversified Commercial Services................................................... 4,536,450 0.6
Diversified Electronic Products................................................... 83,258,775 11.8
Diversified Financial Services.................................................... 347,772 0.0
Diversified Manufacturing......................................................... 3,701,762 0.5
E.D.P. Peripherals................................................................ 17,699,661 2.5
E.D.P. Services................................................................... 5,066,570 0.7
Electric Utilities................................................................ 4,489,000 0.6
Electrical Products............................................................... 6,153,225 0.9
Electronic Components............................................................. 21,517,523 3.0
Electronic Data Processing........................................................ 25,503,157 3.6
Electronic Distributors........................................................... 2,497,643 0.4
Electronic Production Equipment................................................... 15,288,902 2.2
Engineering & Construction........................................................ 153,590 0.0
Finance Companies................................................................. 6,325,848 0.9
Food Chains....................................................................... 4,720,638 0.7
Generic Drugs..................................................................... 1,287,048 0.2
Home Building..................................................................... 7,282,506 1.0
Home Furnishings.................................................................. 799,187 0.1
Hotels/Resorts.................................................................... 344,077 0.0
Industrial Machinery/Components................................................... 41,257,314 5.8
Industrial Specialties............................................................ 6,768,432 1.0
International Banks............................................................... 37,199,423 5.3
Internet Services................................................................. 1,172,275 0.2
Investment Bankers/Brokers/Services............................................... 1,060,637 0.2
<CAPTION>
PERCENT OF
INDUSTRY VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Major Pharmaceuticals............................................................. $ 6,774,235 1.0%
Marine Transportation............................................................. 4,871,998 0.7
Meat/Poultry/Fish................................................................. 3,153,590 0.4
Media Conglomerates............................................................... 8,965,998 1.3
Medical/Nursing Services.......................................................... 569,374 0.1
Motor Vehicles.................................................................... 18,966,316 2.7
Movies/Entertainment.............................................................. 2,470,077 0.3
Multi-Sector Companies............................................................ 29,495,620 4.2
Mutual Funds...................................................................... 1,049,750 0.1
Natural Gas....................................................................... 3,135,496 0.4
Newspapers........................................................................ 5,125,955 0.7
Office Equipment/Supplies......................................................... 22,429,166 3.2
Office/Plant Automation........................................................... 885,175 0.1
Oil Refining/Marketing............................................................ 692,294 0.1
Other Metals/Minerals............................................................. 5,029,879 0.7
Other Pharmaceuticals............................................................. 18,329,879 2.6
Other Telecommunications.......................................................... 14,468,879 2.0
Package Goods/Cosmetics........................................................... 260,967 0.0
Paints/Coatings................................................................... 657,242 0.1
Photographic Products............................................................. 8,363,090 1.2
Pollution Control Equipment....................................................... 5,179,651 0.7
Precious Metals................................................................... 726,949 0.1
Printing/Forms.................................................................... 6,025,839 0.9
Real Estate....................................................................... 29,053,860 4.1
Recreational Products/Toys........................................................ 14,163,349 2.0
Semiconductors.................................................................... 25,081,843 3.6
Specialty Chemicals............................................................... 22,493,567 3.2
Specialty Foods/Candy............................................................. 3,277,206 0.5
Steel/Iron Ore.................................................................... 2,630,859 0.4
Telecommunications................................................................ 20,817,380 2.9
Telecommunication Equipment....................................................... 544,601 0.1
Textiles.......................................................................... 1,484,082 0.2
Tobacco........................................................................... 5,896,846 0.8
U.S. Government Agency............................................................ 4,500,000 0.6
Utilities......................................................................... 3,299,141 0.5
Wholesale Distributors............................................................ 4,511,594 0.6
------------ -----
$695,205,649 98.5%
------------ -----
------------ -----
</TABLE>

<TABLE>
<CAPTION>
PERCENT OF
TYPE OF INVESTMENT VALUE NET ASSETS
------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Common Stocks..................................................................... $689,572,654 97.7%
Convertible Bonds................................................................. 726,735 0.1
Rights............................................................................ 58,488 0.0
Short-Term Investments............................................................ 4,847,772 0.7
------------ -----
$$695,205,649 98.5%
------------ -----
------------ -----
</TABLE>

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

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)

<TABLE>
<S> <C>
ASSETS:
Investments in securities, at value
(identified cost $521,623,578)............................................................. $ 695,205,649
Unrealized appreciation on open forward foreign currency contracts........................... 734
Cash (including $4,512,500 in foreign currency).............................................. 5,590,636
Receivable for:
Investments sold......................................................................... 3,870,626
Capital stock sold....................................................................... 1,892,268
Dividends................................................................................ 1,671,769
Interest................................................................................. 248,069
Foreign withholding taxes reclaimed...................................................... 71,285
Prepaid expenses and other assets............................................................ 190,373
-------------
TOTAL ASSETS............................................................................ 708,741,409
-------------
LIABILITIES:
Payable for:
Capital stock repurchased................................................................ 847,149
Plan of distribution fee................................................................. 588,848
Investment management fee................................................................ 570,922
Accrued expenses and other payables.......................................................... 909,309
-------------
TOTAL LIABILITIES....................................................................... 2,916,228
-------------
NET ASSETS.............................................................................. $ 705,825,181
=============
COMPOSITION OF NET ASSETS:
Paid-in-capital.............................................................................. $ 907,785,759
Net unrealized appreciation.................................................................. 173,565,674
Accumulated net investment loss.............................................................. (8,718,628)
Accumulated net realized loss................................................................ (366,807,624)
-------------
NET ASSETS.............................................................................. $ 705,825,181
=============
CLASS A SHARES:
Net Assets................................................................................... $12,129,835
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 736,725
NET ASSET VALUE PER SHARE............................................................... $16.46
=============
MAXIMUM OFFERING PRICE PER SHARE,
(NET ASSET VALUE PLUS 5.54% OF NET
ASSET VALUE)........................................................................ $17.37
=============
CLASS B SHARES:
Net Assets................................................................................... $ 674,194,624
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 41,315,167
NET ASSET VALUE PER SHARE............................................................... $16.32
=============
CLASS C SHARES:
Net Assets................................................................................... $14,177,978
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 865,483
NET ASSET VALUE PER SHARE............................................................... $16.38
=============
CLASS D SHARES:
Net Assets................................................................................... $5,322,744
Shares Outstanding (500,000,000 AUTHORIZED, $.01 PAR VALUE).................................. 321,889
NET ASSET VALUE PER SHARE............................................................... $16.54
=============
</TABLE>

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)

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

INCOME
Dividends (net of $1,940,741 foreign withholding tax).......................................... $ 2,336,361
Interest....................................................................................... 521,823
-----------

TOTAL INCOME.............................................................................. 2,858,184
-----------

EXPENSES
Plan of distribution fee (Class A shares)...................................................... 12,412
Plan of distribution fee (Class B shares)...................................................... 3,530,326
Plan of distribution fee (Class C shares)...................................................... 70,567
Investment management fee...................................................................... 3,493,157
Transfer agent fees and expenses............................................................... 769,257
Custodian fees................................................................................. 316,829
Shareholder reports and notices................................................................ 173,456
Registration fees.............................................................................. 129,382
Professional fees.............................................................................. 50,200
Directors' fees and expenses................................................................... 8,620
Other.......................................................................................... 18,370
-----------

TOTAL EXPENSES............................................................................ 8,572,576
-----------

NET INVESTMENT LOSS....................................................................... (5,714,392)
-----------

NET REALIZED AND UNREALIZED GAIN:
Net realized gain/loss on:
Investments................................................................................ 48,885,851
Foreign exchange transactions.............................................................. (270,883)
-----------

NET GAIN.................................................................................. 48,614,968
-----------
Net change in unrealized appreciation/ depreciation on:
Investments................................................................................ 49,816,936
Translation of forward foreign currency contracts and other assets and liabilities
denominated in foreign currencies........................................................ (15,466)
-----------

NET APPRECIATION.......................................................................... 49,801,470
-----------

NET GAIN.................................................................................. 98,416,438
-----------

NET INCREASE................................................................................... $92,702,046
===========
</TABLE>

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

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2000 OCTOBER 31, 1999
------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:

OPERATIONS:
Net investment loss...................................................... $ (5,714,392) $ (2,160,050)
Net realized gain (loss)................................................. 48,614,968 (2,794,282)
Net change in unrealized appreciation.................................... 49,801,470 205,302,227
------------ ------------

NET INCREASE........................................................ 92,702,046 200,347,895
------------ ------------

DIVIDENDS TO SHAREHOLDERS FROM NET INVESTMENT INCOME:
Class A shares........................................................... (72,565) --
Class B shares........................................................... (1,348,668) --
Class C shares........................................................... (63,591) --
Class D shares........................................................... (15,563) --
------------ ------------

TOTAL DIVIDENDS..................................................... (1,500,387) --
------------ ------------

Net increase (decrease) from capital stock transactions.................. (43,407,206) 42,445,104
------------ ------------

NET INCREASE........................................................ 47,794,453 242,792,999

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

END OF PERIOD
(INCLUDING A NET INVESTMENT LOSS OF $8,718,628 AND DIVIDENDS IN
EXCESS OF NET INVESTMENT INCOME OF $1,503,849, RESPECTIVELY)......... $705,825,181 $658,030,728
============ ============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED)

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 security listed or traded on the
New York, American or other domestic or foreign stock exchange is valued at its
latest sale price on that exchange prior to the time when assets are valued; if
there were no sales that day, the security is valued at the latest bid price (in
cases where securities are traded on more than one exchange, the securities are
valued on the exchange designated as the primary market pursuant to procedures
adopted by the Directors); (2) listed options are valued at the latest sale
price on the exchange on which they are listed unless no sales of such options
have taken place that day, in which case they are valued at the mean between
their latest bid and asked price; (3) all other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest available bid price prior to the time of valuation; (4) when market
quotations are not readily available, including circumstances under which it is
determined by 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
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

17
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

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 and forward foreign currency
contracts are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the
exchange rates prevailing on the respective dates of such transactions. The
resultant exchange gains and losses are included in the Statement of Operations
as realized and unrealized gain/loss on foreign exchange transactions. Pursuant
to U.S. Federal income tax regulations, certain foreign exchange gains/losses

18
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

included in realized and unrealized gain/loss are included in or are a reduction
of ordinary income for federal income tax purposes. The Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the changes in the market prices of the securities.

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

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

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

2. INVESTMENT MANAGEMENT AND SUB-ADVISORY AGREEMENTS

Pursuant to an Investment Management Agreement, the Fund pays the Investment
Manager a management fee, accrued daily and payable monthly, by applying the
following annual rates to the net assets of the Fund determined as of the close
of each business day: 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

19
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

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
$40,686,910 at April 30, 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 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 six months ended April 30, 2000, the distribution fee was
accrued for Class A shares and Class C shares at the annual rate of 0.22% and
1.0%, respectively.

The Distributor has informed the Fund that for the six months ended April 30,
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 $21,048,
$473,387, and $8,960, respectively and received $34,290 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.

20
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

4. SECURITY TRANSACTIONS AND TRANSACTIONS WITH AFFILIATES

The cost of purchases and proceeds from sales of portfolio securities, excluding
short-term investments, for the six months ended April 30, 2000 aggregated
$175,855,773 and $197,548,203, respectively.

For the six months ended April 30, 2000, the Fund incurred brokerage commissions
of $47,965 with Morgan Stanley & Co., Inc., 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 April 30, 2000,
the Fund had transfer agent fees and expenses payable of approximately $11,600.

The Fund has an unfunded noncontributory defined benefit pension plan covering
all independent Directors of the Fund who will have served as independent
Directors for at least five years at the time of retirement. Benefits under this
plan are based on years of service and compensation during the last five years
of service. Aggregate pension costs for the six months ended April 30, 2000
included in Directors' fees and expenses in the Statement of Operations,
amounted to $2,746. At April 30, 2000, the Fund had an accrued pension liability
of $44,452 which is included in accrued expenses in the Statement of Assets and
Liabilities.

5. FEDERAL INCOME TAX STATUS

At October 31, 1999, the Fund had an approximate net capital loss carryover of
$411,419,000, which may be used to offset future capital gains to the extent
provided by regulations, which is available through October 31 of the following
years:

<TABLE>
<CAPTION>
AMOUNT IN THOUSANDS
--------------------------------------------------
2003 2004 2005 2006 2007
------ -------- -------- -------- --------
<S> <C> <C> <C> <C>
$3,193 $15,875 $97,593 $268,352 $26,406
====== ======= ======= ======== =======
</TABLE>

As of October 31, 1999, the Fund had temporary book/tax differences primarily
attributable to the mark-to-market of passive foreign investment companies and
capital loss deferrals on wash sales.

21
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

6. CAPITAL STOCK

Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
APRIL 30, 2000 OCTOBER 31, 1999
--------------------------- --------------------------
(UNAUDITED)
SHARES AMOUNT SHARES AMOUNT
----------- -------------- ----------- -------------
<S> <C> <C> <C> <C>
CLASS A SHARES
Sold............................................................. 5,008,227 $ 83,974,674 11,093,708 $ 142,833,100
Reinvestment of dividends........................................ 4,138 68,076 -- --
Redeemed......................................................... (4,966,588) (84,107,745) (10,720,515) (138,982,563)
----------- ------------- ----------- -------------
Net increase (decrease) - Class A................................ 45,777 (64,995) 373,193 3,850,537
----------- ------------- ----------- -------------
CLASS B SHARES
Sold............................................................. 14,615,521 242,168,010 55,220,630 690,811,299
Reinvestment of dividends........................................ 76,028 1,243,053 -- --
Redeemed......................................................... (17,380,728) (289,358,272) (53,251,271) (659,859,432)
----------- ------------- ----------- -------------
Net increase (decrease) - Class B................................ (2,689,179) (45,947,209) 1,969,359 30,951,867
----------- ------------- ----------- -------------
CLASS C SHARES
Sold............................................................. 694,174 11,564,083 4,233,781 53,863,013
Reinvestment of dividends........................................ 3,538 57,670 -- --
Redeemed......................................................... (685,803) (11,242,394) (3,542,876) (45,346,907)
----------- ------------- ----------- -------------
Net increase - Class C........................................... 11,909 379,359 690,905 8,516,106
----------- ------------- ----------- -------------
CLASS D SHARES
Sold............................................................. 2,171,595 35,433,881 7,250,183 89,995,532
Reinvestment of dividends........................................ 326 5,384 -- --
Redeemed......................................................... (2,020,377) (33,213,626) (7,239,889) (90,868,938)
----------- ------------- ----------- -------------
Net increase (decrease) - Class D................................ 151,544 2,225,639 10,294 (873,406)
----------- ------------- ----------- -------------
Net increase (decrease) in Fund.................................. (2,479,949) $ (43,407,206) 3,043,751 $ 42,445,104
=========== ============= =========== =============
</TABLE>

7. PURPOSES OF AND RISKS RELATING TO CERTAIN FINANCIAL INSTRUMENTS

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

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

At April 30, 2000, there were outstanding forward contracts used to facilitate
settlement of foreign currency denominated portfolio transactions.

22
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
NOTES TO FINANCIAL STATEMENTS APRIL 30, 2000 (UNAUDITED) CONTINUED

At April 30, 2000, the Fund's cash balance consisted principally of interest
bearing deposits with Chase Manhattan Bank N.A., the Fund's custodian.

At April 30, 2000, investments in securities of issuers in Japan represented
48.3% 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.
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 SIX FOR THE YEAR FOR THE YEAR JULY 28, 1997*
MONTHS ENDED ENDED ENDED THROUGH
APRIL 30, 2000 OCTOBER 31, 1999 OCTOBER 31, 1998 OCTOBER 31, 1997
----------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<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)......... (0.04) 0.05 0.10 --
Net realized and unrealized gain
(loss)............................... 2.09 4.73 (2.94) (6.53)
------- ------- ------- -------

Total income (loss) from investment
operations............................. 2.05 4.78 (2.84) (6.53)
------- ------- ------- -------

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

Net asset value, end of period.......... $ 16.46 $ 14.54 $ 9.76 $ 12.86
======= ======= ======= =======

TOTAL RETURN+........................... 14.08 %(1) 48.98% (22.35)% (33.68)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 1.57 %(2)(3) 1.79%(3) 1.90 %(3) 1.92 %(2)

Net investment income (loss)............ (0.79)%(2)(3) 0.34%(3) 0.89 %(3) (0.03)%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands.............................. $12,130 $10,048 $3,102 $622

Portfolio turnover rate................. 25 %(1) 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
24
<PAGE>
MORGAN STANLEY DEAN WITTER PACIFIC GROWTH FUND INC.
FINANCIAL HIGHLIGHTS, CONTINUED

<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR ENDED OCTOBER 31
MONTHS ENDED --------------------------------------------------------------------------------
APRIL 30, 2000++ 1999++ 1998++ 1997*++ 1996 1995
---------------------------------------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <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 $ 21.60
-------- -------- -------- -------- ---------- ----------

Income (loss) from
investment operations:
Net investment income
(loss)................ (0.13) (0.06) 0.01 0.01 0.05 0.08
Net realized and
unrealized gain
(loss)................ 2.09 4.72 (2.92) (5.77) 0.50 (1.94)
-------- -------- -------- -------- ---------- ----------

Total income (loss) from
investment operations... 1.96 4.66 (2.91) (5.76) 0.55 (1.86)
-------- -------- -------- -------- ---------- ----------

Less dividends and
distributions from:
Net investment
income................ (0.03) -- (0.19) (0.30) (0.43) --
Net realized gain..... -- -- -- -- -- (0.97)
-------- -------- -------- -------- ---------- ----------

Total dividends and
distributions........... (0.03) -- (0.19) (0.30) (0.43) (0.97)
-------- -------- -------- -------- ---------- ----------

Net asset value, end of
period.................. $ 16.32 $ 14.39 $ 9.73 $ 12.83 $ 18.89 $ 18.77
======== ======== ======== ======== ========== ==========

TOTAL RETURN+............ 13.56 %(1) 47.89 % (22.87)% (31.01)% 3.00% (8.65)%

RATIOS TO AVERAGE NET
ASSETS:
Expenses................. 2.35 %(2)(3) 2.56 %(3) 2.65 %(3) 2.44 % 2.39% 2.45 %

Net investment income
(loss).................. (1.57)%(2)(3) (0.43)%(3) 0.14 %(3) 0.03 % 0.18% 0.35 %

SUPPLEMENTAL DATA:
Net assets, end of
period, in thousands.... $674,195 $633,216 $408,990 $744,133 $1,624,468 $1,441,549

Portfolio turnover
rate.................... 25 %(1) 128 % 58 % 42 % 49% 50 %
</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) 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

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)......... (0.13) (0.05) 0.01 (0.04)
Net realized and unrealized gain
(loss)............................... 2.21 4.71 (2.89) (6.52)
------- ------- ------- -------

Total income (loss) from investment
operations............................. 2.08 4.66 (2.88) (6.56)
------- ------- ------- -------

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

Net asset value, end of period.......... $ 16.38 $ 14.38 $ 9.72 $ 12.83
======= ======= ======= =======

TOTAL RETURN+........................... 13.62 %(1) 47.94 % (22.68)% (33.83)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 2.35 %(2)(3) 2.56 %(3) 2.65 %(3) 2.62 %(2)

Net investment income (loss)............ (1.57)%(2)(3) (0.43)%(3) 0.14 %(3) (0.77)%(2)

SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands.............................. $14,178 $12,278 $1,581 $819

Portfolio turnover rate................. 25 %(1) 128 % 58 % 42 %
</TABLE>

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

SEE NOTES TO FINANCIAL STATEMENTS
26
<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)......... (0.04) 0.06 0.07 0.02
Net realized and unrealized gain
(loss)............................... 2.12 4.77 (2.88) (6.55)
------- ------- ------- -------

Total income (loss) from investment
operations............................. 2.08 4.83 (2.81) (6.53)
------- ------- ------- -------

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

Net asset value, end of period.......... $ 16.54 $ 14.61 $ 9.78 $ 12.86
======= ======= ======= =======

TOTAL RETURN+........................... 14.16 %(1) 49.39% (22.14)% (33.68)%(1)

RATIOS TO AVERAGE NET ASSETS:
Expenses................................ 1.35 %(2)(3) 1.56%(3) 1.65 %(3) 1.62 %(2)

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

SUPPLEMENTAL DATA:
Net assets, end of period, in
thousands.............................. $5,323 $2,489 $1,565 $118

Portfolio turnover rate................. 25 %(1) 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
27
<PAGE>

DIRECTORS

Michael Bozic
Charles A. Fiumefreddo
Edwin J. Garn
Wayne E. Hedien
Dr. Manuel H. Johnson
Michael E. Nugent
Philip J. Purcell
John L. Schroeder

OFFICERS

Charles A. Fiumefreddo
Chairman and Chief Executive Officer

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 ACCOUNTANTS

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036

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

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

This report is submitted for the general information of shareholders of the
Fund. For more detailed information about the Fund, its officers and trustees,
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

[PHOTO]

SEMIANNUAL REPORT
APRIL 30, 2000