The latest Business Confidence Index Survey for October and November 2023 conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI) portrays a nuanced scenario in Pakistan's business sector, where modest improvements are noted, but realistic concerns persist, reports WealthPK. Despite positive shifts in macroeconomic indicators, businesses face ongoing challenges, and the impact of structural reforms, rising costs, and international headwinds remain significant. The survey underscores the resilience of top-performing sectors and the need for a comprehensive approach to address persistent economic challenges. According to the survey, sectoral expansion plans showed an increasing trend, where manufacturing (12%) and services (9%) sectors remained the most optimistic, recording an improvement of around 15%. The retail sector (-9%) also showed an increase of 6% but will likely remain negative for the next six months. Employment opportunities are expected to decrease by 9% during the next six months compared to 11% previously.

This indicates that businesses expect the environment to improve. Majid Shabbir, General Secretary, Islamabad Chamber of Commerce and Industry, told WealthPK that Pakistan's economic trajectory had exhibited a volatile growth pattern over the years, characterised by periodic boom and bust cycles. He maintained that these cycles posed significant challenges to attaining sustained, long-term, and inclusive economic growth. "The root causes of this volatility lie in longstanding structural issues, which, if left unaddressed, contribute to unsustainable economic growth." "One significant challenge lies in the regulatory framework. Despite efforts to improve the ease of doing business, bureaucratic red tape and a complex regulatory landscape persist." "Navigating through various permits, licences, and compliance requirements is a time-consuming and arduous process, often leading to delayed and increased operational costs," he highlighted.

Shabbir suggested Pakistan needs a multifaceted strategy for economic revival that encompasses streamlining regulatory processes through digitalisation, persistent efforts to improve the ease of doing business, and prioritising transparency and accountability in regulatory framework. Raja Aamer Iqbal, former president of Rawalpindi Chamber of Commerce and Industry, while talking to WealthPK stressed that Pakistan needs to transform its economy into an export-led growth trajectory through market reforms. "In addition to improving the economy's competitiveness and productivity with a vibrant private sector, it is critical to attracting domestic and foreign investments to support this transformation," he suggested. "Furthermore, fostering innovation and technology adoption is seen as a catalyst for competitiveness, necessitating policies that create a conducive environment." He stressed that skill development programmes aligned with industry needs are essential for preparing the workforce for evolving business landscapes. "Consistent policy implementation and ongoing collaboration with stakeholders, including business associations, are imperative."

Credit: Independent News Pakistan (INP)