OICCI Business Confidence Index turns bullish
Overseas Investors Chamber of Commerce and Industry (OICCI) shared the results of its Business Confidence Index (BCI) Survey - Wave 15, which shows that the overall Business Confidence in Pakistan stands at 21 percent positive, a significant improvement over the 13 percent recorded in the Wave 14 results announced in May, 2017.
This 8 percent improvement reflects a major turnaround after negative trends recorded in the last two surveys - wave 13 and 14 respectively - indicating that the business community is once again bullish and increasingly confident of the investment opportunities available in Pakistan.
The survey results were largely influenced by the retail and wholesale trade sector which led the upswing with 40 percent positive sentiment, recording a 27 percent improvement vs Wave 14.
The manufacturing sector followed with a confidence level of positive 16 percent showing a substantial net increase of 7 percent, while the service sector at 15 percent net positive sentiment recorded a marginal decline of 3 percent vs the Wave 14 survey.
OICCI BCI survey, conducted every six months, is a comprehensive review of both local and global business aspects and is indicative of the direction in which the economy is moving based on the perceptions of key stakeholders of the business community
The latest increase of BCS to 21 percent was mainly due to the significantly improved perceptions of Global, Country and Industry business situation during the past six months as well as expected positive industry business situation with increased level of capital investment over the next six months. These views of the survey respondents were largely based on improvement in security, law and order and the overall economy, increased consumer demand, better business alliances, decline in the energy crises and decrease in fuel prices and low inflationary pressure on various other products.
The sentiments of the leading foreign investors, represented by the OICCI members, who were part of the survey, also recorded an increase, albeit by 5 percent only, to go up to 42 percent from 37 percent in the Wave 14 results.
Commenting on the highly improved Business Confidence survey findings, OICCI President Mr. Khalid Mansoor congratulated "the government and the business community for keeping faith in the economy of the country and focusing on meeting the growing consumer demand and economic opportunities brushing aside serious distraction and media hype during the past six months".
He further pointed out that "the current positive Business sentiment should not be taken for granted as it is strongly co-related with good governance that needs to be supported by a progressive, transparent, consistent and predictable policy framework". Going forward, Khalid Mansoor advised the government Authorities, including the provincial Governments to "become more proactive and expedite critical interventions on all issues hindering investment and economic activities including FDI and export.