Infgostani Sources- The recently conducted business confidence survey by the Overseas Investors Chamber of Commerce and Industry (OICCI) has unveiled a noteworthy surge in business confidence within Pakistan. The Comprehensive Business Confidence Index Survey Wave (24Wave) covered the nation from October to November 2023. The results depict an encouraging overall improvement of 7% compared to the preceding survey wave (23). Notably, the country’s business confidence has shifted from a negative 25 percent to a current negative 18 percent, signaling a positive change in sentiment.
Analyzing the sector-wise dynamics, the manufacturing sector emerges as a frontrunner in this positive upswing, recording an impressive 9 percent increase in business confidence. This shift is significant, transitioning from a negative 19 percent in the previous survey to a more optimistic negative 10 percent. Following closely is the services sector, experiencing an 8 percent uptick, bringing its confidence level to negative 18 percent compared to the previous negative 26 percent. The retail and wholesale trade sector also witnessed an improvement, with business confidence now standing at negative 31 percent. An enhancement from the negative 35 percent recorded in the last survey.
Conducted OICCI Survey: Business Concerns and Optimistic Outlook in Pakistan
Breaking down the demographics of the survey respondents reveals that 43 percent have affiliations with the manufacturing sector. 34 percent with the services sector. As well as 23 percent with the retail/wholesale trade sector. Interestingly, 43 percent of the participants have expressed concerns about the current economic situation potentially impacting their businesses.
Delving into the specifics of these concerns, the survey identifies rising inflation and high taxation. Also, the devaluation of the rupee is the top three apprehensions affecting business growth. It’s worth noting that these concerns echo the sentiments expressed in previous surveys. Indicating a consistent set of challenges faced by businesses in the region.
Aamir Paracha, President of OICCI, offered insights on the report. Attributing the improved business confidence to relatively stable macroeconomic indicators and favorable changes in both the political and economic landscapes. Paracha stressed the stability of the exchange rate and the impressive performance of the Pakistan Stock Exchange. In turn, bolstered additional support to the business ecosystem. This optimistic outlook is set to create a more conducive environment for fostering business development and economic resilience in Pakistan.
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