Why has business confidence in Pakistan dropped in the past six months?
Business confidence in Pakistan has taken a hit in the last six months. This according to a survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI).
The causes? The country faces myriad challenges in the form of energy, security and government policies, the report noted.
The report stated that the overall Business Confidence Index (BCI) stood at 13 percent, which is a steep drop of four percentage points on the previous score of 17% percent reported in November 2016.
BCI is a bi-annual assessment where respondents are drawn from common companies alongside OICCI members, an association of over 195 multinationals operating in Pakistan.
In the latest survey, Pakistan’s services sector was the only industry in the country to make gains – confidence grew by 4 percent while the score of the manufacturing and retail sectors declined by 9 percent and 4 percent, respectively.
According to The Express Tribune: “Key factors responsible for the fall in business confidence were significant drop in capital investment plans for the next six months as well as an unstable business situation in the region and the country during the past six months.”
OICCI President Khalid Mansoor added, “Downward trend in business confidence, including amongst foreign investors, is very disturbing considering the current improved economic parameters,”
He also said that OICCI members are confident that the economic management of Pakistan will be proactive in reversing these less than satisfactory results.