Business optimism climbs in Pakistan as Confidence Index reaches 58.1

ISLAMABAD: Pakistan’s Business Confidence Index (BCI) saw a notable increase, climbing 2.8 points to reach 58.1 in February 2025, according to the latest Business Confidence Survey (BCS) by the State Bank of Pakistan (SBP).

The Industry sector’s confidence rose by 1.7 points, hitting 55.2, while the Services sector experienced an even more significant jump, increasing by 3.2 points to 59.1.

The report breaks down the overall BCI into two key components: the Current Business Confidence Index (CBCI) and the Expected Business Confidence Index (EBCI). The overall BCI is a weighted average, with the Services sector carrying a 75 per cent weight and the Industry sector contributing 25 per cent.

In terms of current business sentiment, the CBCI, which reflects economic conditions over the past six months, climbed 3.8 points to 56.2 in February, driven by improvements in both sectors.

Looking ahead, optimism is reflected in the Expected Business Confidence Index (EBCI), which increased by 1.8 points, reaching 60.0. Both the Industry and Services sectors played a role in this forward-looking growth.

On the inflation front, businesses expressed higher concerns, with Inflation Expectations (IE) rising by 1.9 points to 60.4 in February. The Industry sector saw a 1.2-point rise in inflation expectations, reaching 61.4, while the Services sector jumped by 2.9 points to 59.1.

Employment trends were also highlighted, with the Current Employment Index growing by 2.4 points to 53. This was largely driven by a 2.9-point increase in the Services sector’s employment confidence, which rose to 54.1. The Industry sector saw a modest 0.8-point rise, reaching 49.9.

As for future employment prospects, the Expected Employment Index rose slightly by 0.3 points to 55.1. The Industry sector’s outlook improved by 0.7 points to 53.5, while the Services sector edged up by 0.3 points to 55.7.

These results suggest a cautiously optimistic outlook for Pakistan’s business environment, with sectors showing resilience and expectation for continued growth in the months ahead.

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