A recent study carried out by the abroad Investors Chamber of Commerce and Industry (OICCI) found out that business confidence in the state among the general public has declined drastically over the previous six months.
This has resulted from the crises the country faces in a variety of key sectors of the financial system: energy, safety, and government policies.
In November 2016 on the whole Business Confidence Index (BCI) Survey gesticulate 13 was pegged at 17%. This index has further declined by four points in Wave 14 that was approved out in recent times.
About the Business Confidence Index
OICCI has sponsored this bi-annual appraisal since June of 2010. The contestants of the survey are from common firms as well as members of the OICCI itself. This alliance consists of over 195 multinationals functioning in the country.
Just over a year prior in April of 2016, the BCI score was the highest ever at 36% and this is now considerably lower, which raises some grave questions and alarm bells.
In the most up-to-date survey, BCI found that assurance has grown in only the services segment by 4% while at least two other sectors, retail and manufacturing, it has reduced by 9 and 4 percent correspondingly.
The most significant factors that have resulted in the decline in business confidence were the distinguished reduction in policies for capital investment over the next six months as well as the highly unbalanced business circumstances in the country.
The President of OICCI, Khalid Mansoor, has said that “downward drift in business confidence, plus amongst overseas investors, is very alarming considering the current enhanced economic parameters.”
He further declared that members of the association are very self-assured that the economic managers of Pakistan will be capable of heeding the fundamental messages that this survey is trying to offer and make sure they spin the situation around.
According to the analysis, the sectors in which nearly all of the growth is taking place is economic services (58%), non-metallic (23%), real estate (21%), and chemical/cement (27%) while the inactive sectors are tobacco (-38%), petroleum (-13%) and Textile (-2%).