Business

Due to Prevailing Political Uncertainity; Bussiness confidence finds significant drop.

According to the Bussiness Confidence Index (BCI) Survey Wave 16 released on Tuesday;

”The overall business confidence in Pakistan stands at 14 per cent positive, a significant decline from the 21pc positive announced in November 2017″

Overseas Investors Chamber of Commerce and Industry (OICCI) shared the results of its Business Confidence Index (BCI) Survey-Wave 16, which shows that the overall Business Confidence in Pakistan stands at 14 percent positive, a significant decline from the 21 percent positive recorded in the Wave 15 results announced in November, 2017.

Mr.Bruno Olierhoek (OICCI president)said;

“The significant decline in Business Confidence is not surprising considering that the country has had many challenges during the past six months like Balance of Payment crisis, political uncertainty and related media hype on non-economic issues, decline in FX reserves and significant weakening of exchange rate and Pakistan’s inclusion in FATF grey list together with regular concerns on Pakistan economy reported by local and international media. OICCI members believe that this situation should be taken as a wake-up call by the highest authorities and leaders by proactively engaging with key stakeholders of the economy, like OICCI, and resolving current concerns of the investors, including on matters of taxation, mounting tax refunds and circular debt, and harmonization of policies across different federal and provincial jurisdictions supported by visible improvement in good governance and a policy framework which is progressive, transparent, consistent and predictable .”

 

Looking ahead, for the next six months, the major reason identified by Wave 16 survey respondents for decline was in terms of lower profit and ROI expectations is the upcoming political instability expected due to elections. Return of energy crises was also a reason for increasing pessimism about the future followed by concern on the sustainability of the security situation.

 

Among the positive aspects, was a directional increase in total employees, plans for business expansion, security improvement, expectations of new business alliances (CPEC) and an increase in demand.

BRUNO OLIERHOEK added:

“OICCI members are confident that with genuine public private partnership and proactive and timely critical interventions by the provincial and federal authorities on all issues hindering investment and economic activities, including FDI and export and Pakistan’s dismal rating of 147 out of 190 countries in the  World Bank’s 2018 Ease of Doing Business, Pakistan can achieve much higher economic growth and prosperity which it deserves.”

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