Business trust improves significantly: OICCI's survey
ISLAMABAD: The Overseas Investors Chamber of Commerce and Industry (OICCI) on Thursday unveiled the results of its bi-annual Business Confidence Index (BCI) Survey – Wave 27, conducted across Pakistan in March and April 2025 which reflects significant improvement in overall business confidence, which improved substantially by 16 percentage points from negative 5 percent to positive 11 percent, compared to the previous wave conducted in October November 2024.
However, the respondents have identified corruption, rupee devaluation, security threats/ street crimes, inflation, taxation and inconsistent government policies as threats, of which the share of inflation was 80 per cent, taxation 80 per cent, inconsistent government policies 67 per cent, rupee devaluation 66 per cent, corruption 54 per cent and security threats/ street crime 51 per cent.
Talking to media OICCI President, Yousaf Hussain, Jason Avancena, Syed Akbar Ali and CE/ Secretary General, Abdul Aleem said the positive shift in sentiment across various sectors of the economy can largely be attributed to macroeconomic stability, declining inflation, and anticipated improvements in business conditions over the next six months.
Pakistan's business confidence improves, but investment outlook dims: survey
The manufacturing sector led the recovery in the overall business confidence, improving from negative three percent to positive 15 percent, followed by the retail/wholesale sectors, which rose from negative 18 percent in the previous Wave 26 to positive two percent in the latest survey. The Services sector maintained a steady outlook and jumped from two percent to 10 percent positive in Wave 27.
'The uptick in business confidence is a clear sign that our economic direction is on the right track. We are focused on creating a conducive environment for investment, supporting private sector growth, and ensuring long-term macroeconomic resilience. The improved sentiment among businesses is both encouraging and a validation of our collective efforts,' Yousaf Hussain quoted Finance Minister Muhammad Aurangzeb as saying during a meeting on Thursday.
'Over the past two years, overall business confidence has shown a notable improvement across the business community. This sharp recovery in the Business Confidence in the latest Wave 27 reflects the resilience of Pakistan's business sector and its readiness to seize emerging growth opportunities. It is heartening to see positive momentum across key sectors, which reflects improved sentiment and growing trust in the country's economic direction. To maintain this growing positivity in the business confidence' Yousaf Hussain said, adding 'there must be greater policy consistency, transparency and active engagement with the key stakeholders including OICCI members.'
The BCI Wave 27 survey revealed increased optimism for the next six months, with 45 percent of the respondents expressing positive expectations. Key contributors to this positive outlook include economic growth, improved government policies, investment climate, and security situation.
Despite the positive trend, 53 percent of the survey respondents reported a negative outlook on business conditions over the past six months, which is a substantial improvement from 66 percent negative sentiments in Wave 26. The key concerns indicated in the survey related to political stability, Rupee FX parity, Energy, and trade policies.
The BCI of foreign investors, OICCI members randomly selected for the survey, showed a remarkable increase from positive six percent to 17 percent. This improvement is primarily attributed to better global business climate, an improved industry environment in Pakistan over the past six months, and expectations of increased capital investment in the coming six months.
Abdul Aleem, Chief Executive/Secretary General OICCI, further highlighted, that the latest BCI Wave 27 results were better than anticipated, with positive expectations reflected across all major sectors. 'Employment prospects, expansion plans, and investment expectations demonstrated notable gains, particularly in the manufacturing and retail sectors.'
'New investment plans overall showed an improvement of 19 percent, but remained negative, which is an area of concern and needs to be addressed to further accelerate economic growth, energize Large Scale Manufacturing, trade and export,' he said.
The OICCI BCI survey is conducted twice a year and reflects the views of major business stakeholders representing nearly 80 percent of Pakistan's GDP. The survey covers responses from various sectors, including manufacturing, services, and retail/wholesale, and assesses perceptions at regional, national, and business entity levels. The survey is conducted face to face throughout the major business centres of the country including Karachi, Lahore, Rawalpindi /Islamabad, Peshawar, Faisalabad etc.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
20 hours ago
- Business Recorder
OICCI demands implementation of tax reforms
KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has called on the government to immediately implement long-delayed tax reforms, including a phased reduction in the corporate tax rate from 29 percent to 25 percent by 2030, to align Pakistan with regional economies and attract sustainable foreign direct investment. Declaring that Pakistan is at a crossroads, OICCI Secretary General M Abdul Aleem warned that the window for reform is rapidly closing, and stressed the need for a fair, predictable, and investment-friendly tax regime in the upcoming Budget 2025-26. 'If we want to attract sustainable investment, widen our tax base, and support economic growth; the time to act is now, and initiate long term tax reforms. OICCI's proposals are not just about reducing taxes, they're about creating a system that is fair, predictable, and future-ready.' Talking to Business Recorder on Budget proposals related to tax, the Secretary General said that every year the OICCI, after consultation with its members, put forward practical, data-backed recommendations to the government of Pakistan whose aim is to encourage investment, promote ease of doing business, and a growth-oriented tax system. OICCI seeks key tax reforms to increase tax-to-GDP ratio For Budget 2025–26, OICCI focused on five key areas including corporate tax rationalisation, broadening of the tax base, encouraging local manufacturing, supporting exports and green investments, and easing compliance for taxpayers. 'We have also proposed a gradual phasing out of the super tax; 6 percent this year, 3 percent next year, and full elimination by FY28,' he added. OICCI strongly believes the proposed action will encourage formalisation and ease the burden on compliant taxpayers who are currently facing a disproportionately high effective tax rate, he said. Aleem said that broadening the tax base remains a high-priority area and all sectors especially trade, agriculture, and services to be brought into the tax net proportionate to their share in GDP. It has observed that with some extra efforts there is data available in the overall banking and trade system to broaden the tax base. In addition, OICCI has also called for a timeline to phase out tax exemptions in FATA/ PATA, greater transparency in refund disbursements, and strict enforcement against the illicit tobacco trade. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
Seafood sector: performance highlighted
LAHORE: Pakistan's seafood sector continues to demonstrate resilience and growth, supported by the country's abundant marine resources and increasing international demand. Nazir Hussain, President Pakistan China Joint Chamber of Commerce and Industry (PCJCCI) emphasized the sector's strong export performance and the growing importance of China as a destination for Pakistani seafood products. According to data released by the Pakistan Bureau of Statistics (PBS), Pakistan's seafood exports from July to May (2020-24) stood at $383.088 million; an increase from $373.382 million recorded during the same period in 2019-23. This reflects a year-on-year growth rate of approximately 2.6 percent, despite global economic challenges and fluctuating trade patterns. He added Pakistan is endowed with immense fishing potential, thanks to our 1,000-kilometer-long coastline, diverse aquatic species, and favourable climatic conditions. China has emerged as a pivotal partner in our seafood trade, accounting for a substantial portion of our exports. Brig. Mansoor Saeed Sheikh (retd), Senior Vice President PCJCCI said that China is one of the world's largest consumers and importers of seafood. According to the International Trade Centre (ITC), Pakistan exported around 29% of its total fish and aquatic products to China in 2019 alone. With increasing urbanization and growing consumer demand for high-protein diets, China's seafood imports have surged, creating significant opportunities for Pakistani exporters. Pakistan's geographical proximity, competitive pricing, and abundant supply position it as a natural trading partner for China's seafood sector. Zafar Iqbal, Vice President PCJCCI further highlighted the need for Pakistan's fisheries industry to move toward value-added processing, such as filleting, vacuum-packing, and quick freezing, to capture higher margins in export markets. By investing in modern processing and cold chain infrastructure, we can significantly enhance export revenues and create employment opportunities. There is also rising interest among Chinese investors to establish seafood processing facilities directly in Pakistan. This would reduce logistics costs and improve supply chain efficiency. He added that there is only one factory that has just started working on nitrogen-based quick-freezing ice. This technology helps in maintaining the quality. The product freezes fast. Salahuddin Hanif, Secretary General PCJCCI said that Pakistan's government has taken several steps to boost the fisheries sector, including the modernization of fishing harbours, training for fishermen, and subsidies for cold storage and transport. Additionally, the Marine Fisheries Department is working closely with exporters to ensure compliance with international quality standards. Our goal is to position Pakistan not just as a supplier of raw seafood, but as a competitive producer of high-quality, value-added marine products for international markets. Copyright Business Recorder, 2025
Express Tribune
4 days ago
- Express Tribune
Govt unveils maritime chamber
Listen to article Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, has announced the establishment of the Maritime Chamber of Commerce and Industry (MCCI) to promote the blue economy and enhance environmental sustainability across Pakistan's maritime sector. Speaking at the Pakistan Business Council Forum on Saturday, according to an official statement, the minister stressed the urgent need to align maritime development with sustainability goals, particularly in the context of increasing climate-related challenges in the Global South. He pointed out that Pakistan's coastal regions are particularly vulnerable to rising sea levels, extreme weather events, and environmental degradation, underscoring the necessity of a dedicated platform to drive eco-conscious policymaking. The minister stated that the MCCI will offer a specialised institutional framework to unify stakeholders from across the maritime spectrum, including ports, shipping, logistics, fisheries, and marine services. "This chamber will not only support investment and innovation in the maritime sector but also prioritise sustainability at ports, promote green technologies, and foster carbon reduction strategies," said Chaudhry, as per the statement. He reiterated the government's commitment to public-private partnerships and invited collaboration with environmental experts, industry leaders, and civil society to ensure that maritime growth supports both national and international climate objectives. Chaudhry also reassured the business community that their concerns are being acknowledged and addressed, citing active coordination with the chief minister of Sindh to ensure cohesive and integrated action across all levels of governance. Additionally, the maritime minister outlined the ministry's strategic roadmap for modernising Pakistan's port infrastructure. The focus areas include digitalisation, efficient cargo handling, and embedding environmental sustainability in port operations. The Pakistan Business Council expressed strong support for the initiative, recognising the establishment of the MCCI as a significant step toward building a climate-resilient and economically dynamic maritime economy, the statement added.
