Despite various challenges, Pakistan's economy is demonstrating resilience and gradual improvement, according to a recent report by the Overseas Investors Chamber of Commerce and Industry (OICCI). The report indicates that business confidence improved by four percentage points to -14% in March-April 2024 from -18% in October-November 2023. Sector-wise, manufacturing confidence fell to -15%, while retail sector confidence rose by 16 points to -15%. The services sector's confidence improved to -14% from -18%.
Majid Shabbir, adviser to the Islamabad Chamber of Commerce and Industry, noted that Pakistan's economic growth has been volatile, with periodic boom and bust cycles causing challenges for sustained, long-term growth. These cycles are driven by structural issues that lead to unsustainable growth if unaddressed.
Shabbir emphasized that, despite improvements in some economic indicators, the business community remains cautious due to uncertainties about political stability and economic policy consistency. He recommended that the government implement policies with broad political support and long-term strategic planning to ensure consistency.
Efforts to improve the ease of doing business have shown positive results, but further action is needed. Streamlining regulatory processes, reducing bureaucratic inefficiencies, and enhancing transparency are crucial for creating a more business-friendly environment. Addressing these issues would help reduce operational costs, foster innovation, and attract both domestic and foreign investment.
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