The Overseas Investors Chamber of Commerce and Industry (OICCI) recently shared the results of its Business Confidence Index (BCI) Survey that reveals that the overall Business Confidence Score (BCS) in Pakistan has dropped significantly during the past six months.
According to OICCI, this drop has occurred as a consequence of the hurdles being faced by the country in different sectors, such as energy, security and government policies.
The results of the survey indicates that the overall BCI score currently stood at 13%, which marks a drop of 4% points when compared with the 17% in the corresponding month of the preceding year.
Those who are not familiar with the matter, BCI is a bi-annual assessment that is sponsored by the OICCI since June 2010. Participants in the survey are mostly from common firms as well as OICCI members, a whole association of approximately 195 multinationals operating in our nation.
If we’re to focus on the positive side, service sector has gained in confidence by 4%. Unfortunately, service sector is not the sector that experiences a gain. Also, the business confidence score of retail and manufacturing sector dropped by 4% and 9% respectively. Many analysts believe that drop in capital investment plans and unstable business situation in the country are the main factors that resulted in the drop of business confidence score.
“Downward trend in business confidence, including amongst foreign investors, is very disturbing considering the current improved economic parameters,” OICCI President Khalid Mansoor said.
He added that members of OICCI are pretty confident that economic managers of Pakistan will take note of this matter and will analyze the key messages that the new survey offers to take proactive corrective measure to reverse the trend.
It is important to mention that the survey was conducted through field interviews in all four provincial capitals, and is based on the feedback that was given by the representatives of all business segments in our country, including retail. The survey also covers approximately 80% Gross Domestic Product (GDP) of Pakistan.