KARACHI: Business confidence in Pakistan is on the upswing, according to the latest Business Confidence Index (BCI) survey released by the Overseas Investors Chamber of Commerce and Industry (OICCI) on Tuesday.

Wave 24 of the OICCI survey conducted from October to November indicated a seven per cent overall improvement over the preceding wave held in March-April.

The survey paints a “nuanced picture” of business sentiments with the overall business confidence in Pakistan standing at negative 18pc, marking a positive shift from negative 25pc recorded earlier, it said.

The largest increase was recorded in the manufacturing sector at negative 10pc versus negative 19pc previously, followed by the services sector at negative 18pc as opposed to negative 26pc in the preceding wave.

The retail and wholesale sector, although still least confident, has seen an improvement at negative 31pc compared to negative 35pc in the preceding survey.

Despite the positive momentum, over three-quarters of respondents expressed concerns that the current economic situation could adversely affect their businesses. The top three threats identified were rising inflation, high taxation and devaluation, concerns that are consistent with the previous wave.

OICCI President Amir Paracha attributed the improvement in business confidence to relatively stable macroeconomic indicators along with favourable changes in the political and economic landscape, which was also supported by some stability in foreign exchange rates and a record performance at the Pakistan Stock Exchange.

Key parameters contributing to the positive trend include capital investment and the outlook for Pakistan’s business situation in the next six months.

A comprehensive survey conducted periodically across nine cities, the BCI gathers feedback from frontline business stakeholders representing almost 80pc of GDP.

The Wave 24 sample included 43pc respondents from the manufacturing sector, 34pc from the services sector and 23pc from the retail/wholesale trade. Surveyed respondents expressed their outlook with 41pc having a negative perspective on the business situation in the next six months. Looking ahead, 36pc respondents said they were optimistic about the next six months.

Published in Dawn, November 29th, 2023