Islamabad, Dec 12: The Overseas Investors Chamber of Commerce and Industry (OICCI) has published the results of its Business Confidence Index (BCI) Survey – Wave 26, conducted in October and November 2024. The survey indicates a notable 9% improvement in business confidence, shifting from -14% to -5% compared to the previous survey conducted in March-April 2024.
This recovery is attributed to economic stability, a steady exchange rate, and lower inflation. The Services Sector showed the strongest recovery, rising from -14% to +2%, followed by the Manufacturing Sector, which improved from -15% to -3%. Conversely, the Retail/Wholesale Sector declined from -15% to -18%.
OICCI President Yousaf Hussain remarked, “The rise in business confidence reflects a strengthened economic outlook and the resilience of Pakistan’s business sector.” He credited government measures under IMF programs for enhancing the country’s risk profile, stabilizing the exchange rate, and curbing inflation. However, Hussain emphasized the need to address challenges such as high energy costs, taxation burdens, and inconsistent policies to sustain progress, attract investment, and create employment opportunities.
Optimism for the coming six months has grown, with 43% of participants expressing positive expectations, up from 34% in the previous survey. Factors driving this sentiment include better government policies, global market growth, improved law-and-order conditions, and economic expansion. However, Secretary General M. Abdul Aleem expressed concern over reduced investment plans, which fell to -23% from -12% in the previous wave, calling for focused action to enhance economic growth.
Despite positive trends, 66% of respondents still reported negative business conditions over the past six months, though this was an improvement from 76% in Wave 25. Key concerns include inflation, political uncertainty, rising fuel costs, and inefficiencies in trade policies. Foreign investors showed a more positive outlook, with their BCI increasing to +6% from -4% in the previous survey, driven by improved global and domestic business conditions.
The OICCI BCI Survey, conducted regularly, reflects feedback from stakeholders representing nearly 80% of Pakistan’s GDP, covering the manufacturing (41%), services (35%), and retail/wholesale (24%) sectors. While the findings indicate cautious optimism, OICCI underlined the need for consistent and transparent policies to foster economic growth, boost investments, and enhance exports and job creation.
