KARACHI: Over 40 per cent of those surveyed in the
‘Seventh Wave Business Confidence Index’ quoted bullish foreign direct
investment, estimating higher inflow of three billion dollars during the
current year.
The survey was conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI).
Similarly, 48pc respondents plan on increasing capital investment over the next six months, expecting increase in sales and returns.
According to the survey, business sentiment soared sharply from minus 34pc in August 2012 to positive 2pc in July 2013 following smooth transition of government.
The manufacturing sector recorded the biggest turnaround from minus 37pc to positive 4pc followed by retail sector that improved from minus 48pc to minus 6pc and service sector from minus 17pc to positive 5pc in the same period.
A majority of the respondents believed that the Federal Budget 2013-2014 would produce little or no impact on business.
Notably, 60 per cent expressed confidence in government’s ability to improve security in Punjab, Balochistan, Khyber Pakktunkhwa and Gilgit-Baltistan as opposed to Karachi-based respondents who remained pessimistic.
The turnaround in sentiments appears to be influenced by the perception of PML-N as a business friendly political party expected to exercise good governance and astute sense to manage the economy, said OICCI President Kimihide Ando. Consistent downward inflationary trend from 10.8pc in July 2012 to 7.4pc in June 2013 and expectations that it would remain within the single digit-mark contributed to positivity, he added.
He said that positive sentiments were also fueled mainly by the perception that the new government would improve governance, take appropriate measures to reduce load shedding and control plummeting security, daunting challenges and impeding economic growth.
The survey was conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI).
Similarly, 48pc respondents plan on increasing capital investment over the next six months, expecting increase in sales and returns.
According to the survey, business sentiment soared sharply from minus 34pc in August 2012 to positive 2pc in July 2013 following smooth transition of government.
The manufacturing sector recorded the biggest turnaround from minus 37pc to positive 4pc followed by retail sector that improved from minus 48pc to minus 6pc and service sector from minus 17pc to positive 5pc in the same period.
A majority of the respondents believed that the Federal Budget 2013-2014 would produce little or no impact on business.
Notably, 60 per cent expressed confidence in government’s ability to improve security in Punjab, Balochistan, Khyber Pakktunkhwa and Gilgit-Baltistan as opposed to Karachi-based respondents who remained pessimistic.
The turnaround in sentiments appears to be influenced by the perception of PML-N as a business friendly political party expected to exercise good governance and astute sense to manage the economy, said OICCI President Kimihide Ando. Consistent downward inflationary trend from 10.8pc in July 2012 to 7.4pc in June 2013 and expectations that it would remain within the single digit-mark contributed to positivity, he added.
He said that positive sentiments were also fueled mainly by the perception that the new government would improve governance, take appropriate measures to reduce load shedding and control plummeting security, daunting challenges and impeding economic growth.
