Business confidence up, but stays in negative zone

Business confidence in Pakistan has gone up by four percentage points, though it still remains negative, as reflected in the 25th Wave of the Business Confidence Index (BCI) survey conducted across the country during March-April 2024 by the Overseas Investors Chamber of Commerce and Industry (OICCI). “The OICCI Business Confidence Index has shown some positive signs of economic recovery, rising to negative 14% in March-April 2024 from negative 18% in the previous survey from October-November 2023,” said OICCI President Rehan Shaikh. The upward trend, albeit slow, indicated a more optimistic business environment, supported by improving economic growth, a stable exchange rate, and declining inflation, he said. Going forward, anticipation of rising inflation, high taxation and inconsistent government policies were expressed as key threats to business growth by the survey respondents.The BCI results reflect feedback from about 80% of the gross domestic product (GDP) stakeholders and consist of 43% participants from the manufacturing sector, 36% from services, and 20% from retail/wholesale trade.