KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) conducted a survey throughout the country in September to assess the business activities.
According to the Business Confidence Index (BCI) survey results, overall BCI score remained the same with 1 per cent growth, however, the manufacturing sector declined by 5 percent from positive 12pc in March and reached 7pc. This decline was partially offset by an uptick in BCI of the services sector which improved from negative 3 percent to positive 7 percent in the current survey.
Despite growing business confidence during the last six months, overall confidence level of OICCI members, representing foreign investors, revealed a marked decline from 31 percent in March to 16 percent in the latest survey.
Encouraging the positive note, OICCI President Asad S Jafar said that despite political uncertainty, it was good omen for business community. However, he said that this positivity teeters on the border line, posing a serious challenge to federal and provincial authorities to focus on good governance and create an enabling business environment. This coupled with the dismal level of current first quarter Foreign Direct Investment (FDI), as reported recently by State Bank of Pakistan, should be a key concern for the Government.
Going forward, business confidence for the next six months remains largely negative except for the services sector that expects a better business environment, the survey suggests. While 54 percent of the businesses expect their operations to remain static over the next six months, only 30 percent expect an increase.
Conducted through field interviews in all four provincial capitals, Islamabad and key business towns across the country, the survey covers feedback from representatives of all business segments in Pakistan, covering roughly 80 percent Gross Domestic Product. The survey is based on feedback from manufacturing (46pc), services (29pc) and the retail and wholesale trade (25pc) sectors.
