By Staff Reporter
KARACHI: Pakistan’s business sentiment has surged to its highest level in years, with confidence jumping 11 percentage points to 22%, even as executives flagged persistent hurdles like taxation, inflation and corruption that threaten to derail growth.
The uptick marks a notable turnaround from prior surveys, driven by gains across sectors and regions, according to the latest Business Confidence Survey from the Overseas Investors Chamber of Commerce and Industry.
The poll, which covers companies accounting for about 80% of the nation’s gross domestic product, underscores a broader economic recovery amid efforts to stabilise the rupee and attract foreign investment.
Despite the optimistic headline, respondents identified taxation, inflation, rupee devaluation, corruption and inconsistent government policies as key concerns. “These remain the top threats to sustained business growth,” the survey said.
The services sector led the charge, posting its highest score since 2017 with a 24% improvement. Retail followed with a 15% gain, while manufacturing eked out a 1% increase. Geographically, metro cities climbed from 14% to 23%, and non-metro areas swung from negative 3% to 19%, signalling a widespread rebound.
OICCI members, which include major multinational firms, showed particular buoyancy. Their confidence rose from 17% in the prior wave to 27%, fueled by expectations of expanded investments and operations in the months ahead, according to a press release.
Forward-looking metrics painted an even brighter picture. The New Orders Index, a gauge of expansion plans, vaulted to 41% from 26%, propelled by services jumping from 23% to 47% and retail from 14% to 41%. Manufacturing edged up from 36% to 37%. Hiring intentions also firmed, with the New Jobs Index advancing to 16% from 13%, thanks to a 21-point surge in services from 8% to 29%. Investment sentiment flipped positive, with the New Investment Index improving to 12% from negative 4%, reflecting rebounds in services and manufacturing.
The survey also spotlighted a pivot toward technology, with 43% of OICCI members already using generative AI and 81% anticipating it will handle core business functions soon. Still, the manufacturing sector’s tepid progress highlights vulnerabilities. Sustaining the momentum will demand targeted policies to bolster industrial competitiveness and curb cost pressures, ensuring confidence spreads evenly across the economy.
Copyright © 2021 Independent Pakistan | All rights reserved
