Pakistan’s Business Confidence Index improves by 4pc: OICCI survey

Business confidence in Pakistan has improved by 4%, but remains in the negative, according to 25th Wave of the Business Confidence Index (BCI) survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI).

The survey was conducted across Pakistan during March-April 2024.

According to the OICCI, The Business Confidence Index has shown some positive signs of economic recovery, rising to negative 14% in March-April 2024 from negative 18% in the previous survey of October- November 2023.

Going forward, the anticipation of rising inflation, high taxation and inconsistent government policies have been expressed as key threats to business growth by the survey respondents.

The OICCI BCI results reflect feedback from about 80% of the GDP stakeholders and comprised 43% of participants from the manufacturing, 36% from services, and 20% from the retail/wholesale trade sectors in Pakistan.

The OICCI survey further mentioned that the global business situation over the past six months and expectations about the next six months are the main driving factors for this drop in foreign investors’ confidence.

However, as seen in the past, the confidence of OICCI members still remains higher than that of non-members.

Key factors raising concerns over the past six months include political instability (74%), fuel prices (70%), high inflation (69%), and currency devaluation (65%).