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Thursday, February 15, 2024

Pakistan records 59 pc increase in Business Confidence Index

As lockdown lifts and Pakistan's manufacturing industries resume operations, investors express confidence and optimism regarding the country's business environment. Due to this, the OICCI upgraded Pakistan by 59pc in its survey.

According to a survey of the Overseas Investors Chamber of Commerce and Industry (OICCI), Pakistan’s business environment is improving dramatically.

OICCI shared the results of its comprehensive Business Confidence Index (BCI) survey titled “Wave-20”, conducted throughout the country from May to July 2021.

The OICCI survey shows a record improvement by 59 percent from the previous negative 50 percent score in the Wave 19 survey conducted in May 2020.

Read more: Pakistan Economy: History and Required Reforms 

Taking to Twitter, PM Khan shared the news of Pakistan’s improving business prospects.

“More good news on the economic front. OICCI’s BCI Survey shows Pakistan standing at a positive score of 9%, an improvement of 59% from -50% of May 20,” the PM wrote.

“OICCI members confidence stands at +34% vs -74% in 2020, a turnaround of 108%. A dramatic rise in confidence of business especially foreign investors,” he further added.

Due to the Covid and frequent lockdowns within the country, businesses were severely affected. This led to Pakistan dropping down to the negative territory in the last OICCI survey. However, as lockdown lifts and businesses return to their usual operations, investors express confidence in Pakistan.

Read more: Pakistan’s economic development amidst global challenges

Pakistan’s 2020 performance

Last year, the overall business confidence in Pakistan fell. The Wave 19 survey revealed that Covid lockdowns created an atmosphere of uncertainty within the business world.

“The overall Business Confidence Score (BCS) in Pakistan stands at negative 50pc, a further drop by 5pc from the already 45pc negative score in Wave 18 Survey conducted in August 2019,” said the OICCI in a statement released along with the data.

Moreover, the declines reflected “the continued pessimism across all sectors in general and particularly in the manufacturing and services sector.”

The OICCI conducted the survey throughout Pakistan from May to June 2020. It said Pakistan’s decline in performance is largely influenced by the Covid-19 pandemic. As a result, the associated mitigation measures negatively impacted nearly all business activity.

Read more: Trade deficit soars by 86%: Is the economy doing any better?