‘Sharp decline in investor confidence’

KARACHI: Overseas investors’ confidence has seen a sharp decline in July-Dec 2018 due to change in economic landscape with pressures on the balance of payments front, depreciating rupee, rising interest rates and subsequent inflationary pressures dampening investor sentiment.

The findings of the business confidence survey (BCS), conducted by the Overseas Investors Chambers of Commerce and Industry.

(OICCI), revealed that the investor confidence declined to negative 12 per cent compared to the positive 14pc in the first half of 2018, according to the

The results were largely influenced by the negative sentiment in the services sector – which represents nearly 30pc of the total respondents – and partially by the retail and wholesale trade and manufacturing sectors.

According to the BCS findings, score of respondents from the services sector was 29pc negative down from the 23pc positive in the previous Jan-May 2018 BCS.

On the other hand, confidence amongst retail and wholesale trade sectors — representing 30pc of the total sample size, also receded to 5pc negative from 6pc positive in the first half of 2018.

The manufacturing sector, which represents the remaining 40pc of the respondents, was at 4pc negative, down from the 15pc positive during the last BCS.

President OICCI Irfan Wahab Khan, interpreting the findings of the wave 17 survey, said that the results were largely anticipated while adding that the business friendly measures announced by the government in the supplementary finance bill are timely and provide clarity towards policy direction of the incumbent government.

He said that some of these measures are likely to overturn the prevalent negative sentiment of the business community and help move the economy towards growth and spur investment.

Khan hoped the government will collaborate with key stakeholders in its process of developing a robust economic recovery plan, outline the export growth strategy, leverage technology and goods governance framework to deliver on the vision for economic growth in the near to medium term.