Pakistan’s business confidence has risen by 9% from negative 14% in March and April 2024 to 5% in October and November despite ongoing challenges such as high inflation, political instability, rising fuel prices, and ineffective trade policies, according to Business Confidence Index (BCI) Survey – Wave 26, conducted by the Overseas Investors Chamber of Commerce and Industry.
This improvement in business sentiment stemmed from a stable exchange rate, declining inflationary pressure, and positive economic growth.
The services sector led the recovery, improving from negative 14% to a positive 2%, followed by the manufacturing sector, which rose from negative 15% to negative 3%. However, the retail and wholesale sector experienced a decline, with confidence dropping from negative 15% to negative 18%.
OICCI President stated that the improvement in the BCI reflects an overall enhancement in Pakistan’s economic outlook and the resilience of the business environment despite ongoing challenges.
The survey results also indicated growing optimism for the next six months, with 43% of respondents expressing positive expectations, up from 34% in the previous wave.
This optimism was attributed to several factors, including global market growth, improved government policies, declining inflation, enhanced law-and-order conditions, and ongoing economic recovery.
Addressing rising costs, particularly energy prices, high taxation, and policy inconsistency through meaningful engagement between policymakers and the industry, is crucial, he said, adding that this will further improve business confidence, attract local and foreign investment, and boost job creation across the country.
OICCI Secretary General M Abdul Aleem noted that feedback from BCI Wave 26 reflects cautious optimism among businesses, with significant gains in the services and manufacturing sectors. However, new investment plans overall were negative 23%, compared to negative 12% in the previous BCI 25.
