OICCI Reports Improved Business Confidence

The Overseas Investors Chamber of Commerce and Industry (OICCI) has shared the results of its Business Confidence Index (BCI) survey for October-November 2024, revealing a notable improvement in Pakistan’s business sentiment.

The index now stands at -5%, a significant improvement from -14% recorded in March-April 2024. This 9-percentage-point gain underscores growing optimism across key economic sectors.

Economic Indicators Driving Positive Sentiment

OICCI identified several contributors to this upward trend, including:

• Economic Growth: Positive trends in key sectors have strengthened market outlooks.
• Currency Stability: A stable exchange rate has alleviated financial uncertainties for investors.
• Lower Inflation Rates: Reduced inflation has created a more favorable environment for business operations.

Sectoral Insights

The survey highlights varied performance across sectors:

• Services Sector: Emerged as the top contributor to the improved index, reflecting enhanced activity and investor confidence.
• Manufacturing Sector: The index for this sector jumped from -15% to -3%, pointing to a gradual revival in industrial production.
• Retail and Wholesale Sector: Struggled with declining confidence, dropping from -15% to -18%, due to lingering issues in consumer demand and supply chain disruptions.

Past Trends and Progress

Earlier in 2024, the OICCI reported a 4% improvement in business confidence during its 25th Wave survey. While the index remained in the negative zone at -14%, it hinted at early signs of recovery. The latest findings further solidify this positive trajectory, suggesting a cautiously optimistic outlook for the coming year.