Business confidence has further declined

ISLAMABAD: Pakistan's overall business confidence rose last year due to a number of factors, including high inflation and interest rates, rupee depreciation and economic stabilization program, as well as lockdown and uncertainty caused by the corona virus. Decreased

The disclosure was made in the Business Confidence Index (BCI) Survey - View 19 conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), Dawn reported.

"Overall Business Confidence Score (BCS) in Pakistan stands at minus 50 per cent, which is already 45 per cent in the Wave 18 survey conducted in August," the OICCI said in a statement with the data. Is 5 percent lower than the negative score of ', a decrease that has' reflected disappointment in all sectors in general and in the manufacturing and services sector in particular'.

The manufacturing sector's business confidence was about 42% in survey respondents, down 5% from the previous six months and down to negative 48% from minus 43% in View18.

According to 29% of respondents, the services sector fell further from negative 49% of BCS View 18 to negative 59%.

The BCS of retail and wholesale trade remained unchanged at 44% in both the surveys.

The OICCI said the survey was conducted across Pakistan between May and June 2020 and was largely influenced by measures to control the corona virus, which has negatively affected almost all business activities.

OBCCI President Haroon Rashid said: "The outbreak of this epidemic comes at a time when the country is already in the throes of a major economic stabilization program since the beginning of 2019. The rupee depreciated sharply (38% in the last 12 months), the State Bank of Pakistan (SBP) had a high policy rate (up to a maximum of 13.25% in December 2019) and consequently high inflation. Money has also affected business.

"Because of this, the poor business confidence score in the last two surveys, which is a cause for concern for all stakeholders, is not surprising, in fact understandable in the current challenging situation," he said.

"We have to focus on the future, which by chance looks both bright and bleak, as the country is slowly emerging from the Corona crisis," he said.

He argued that the country has significant growth potential and both the government and the OICCI need to work together to create a positive momentum for economic growth.

Over the past six months, the majority of respondents have experienced a decline in their sales volume, profits and return on investment and have been unable to grow their business. However, for the next six months, survey respondents were relatively positive.