Business optimism in Pakistan has plunged to negative 4% in the last six months . The decline in optimism is regrettable but not surprising considering the challenging political and economic situation .
Islamabad, Pakistan, December 8: Business optimism in Pakistan has plunged to negative 4% in the last six months, down by 21% from the previous 17 percent, which was recorded in March and April, according to the Overseas Investors Chamber of Commerce and Industry (OICCI).The dramatic decline in overall business optimism to negative 4 percentage is regrettable but not surprising considering the challenging political and economic situation in the last six months.In addition, high inflation, higher fuel prices, and a major currency depreciation dampened economic activity, according to OICCI President Ghias Khan.The service sector saw the biggest drop in confidence during August, followed by retail, wholesale trade, and, at last, the manufacturing sector, according to Dawn.The survey sample included 42% of respondents from the service sector, 33 percent from the services sector, and 25 percent from the retail and wholesale trade.Despite a 20 percent decline in optimism, the manufacturing industry saw a net optimism level of positive three percentage points.
In the recent past, foreign investors have also demonstrated greater market confidence than non-members,Khan said, adding that the feedback would be much more encouraging if there were no delays in the updating of pharma pricing and processing of overseas remittances for goods, services, and dividends.According to Dawn, such actions are counterproductive to foreign direct investment.In the survey, inflation (78%), high taxes (71%), and currency depreciation (70%) have been identified.In the last eight months, he said, it has done huge harm to the national economy.