Business Confidence Index (BCI) survey—Wave 16, conducted by Overseas Investors Chamber of Commerce and Industry (OICCI) has revealed the results on Tuesday which indicates that Pakistan stands at 14% positive currently which is a significant slump from 21 percent positive measured in the previous survey Wave 15 in November 2017.
Despite facing a decline in BCI, some sectors still witnessed some confidence boost. The confidence in the manufacturing sector was stable at 15 percent, while the services sector was at the top 23 percent positive as compared to 15 percent positive in the previous Wave 15 survey.
OICCI conducts Business Confidence Index (BCI) survey every six months, the survey takes the comprehensive review of both local and global business environment, also indicates the perceptions of key stakeholders in order to show what KPIs tells where the economy is heading.
According to the report, the major reason for the decline in BCI of Pakistan is due to uncertainty in the perceptions of Global, Industry and Country business situation during the past six months also the feedback from respondents suggest that investment, ROI, ACI and Profitability over the next six months will also be decreased.
The growing concerns about government policies, governance, increasing inflation, security conditions, political uncertainty associated with upcoming elections, increasing energy crisis were among the top reasons for BCI decline.
OICCI president Bruno Olierhoek while commenting on the findings said, “it is not surprising that BCI is dropped for the country despite having endless challenges in the past six months including political uncertainty, media hype of non-economic issues, balance of payment crisis, weakening of Rupee against dollar and declining forex reserves, the country’s inclusion in FATF grey list and regular updates on economy reported by local and international media were all the challenges the country faced. But the current situation should be taken as a wakeup call by the higher authorities. Pakistan should resolve the investor’s concerns, taxation, circular debt, foreign reserves, the balance of payments, the government should progress with good governance and policy framework, the economy should be progressive, transparent, predictable and consistent, he added.
Bruno also said that OICCI members are confident that with strong public-private partnerships and strong involvement of federal and provincial authorities to curb the issues affecting investments, FDIs and export could achieve much higher economic growth for the country, Pakistan’s current 147 out of 190 rating for ease of doing business World Bank 2018 could also be improved significantly.