Pakistan’s business sentiment dips as industry, services confidence weakens

ISLAMABAD: In September 2024, the overall Business Confidence Index (BCI) dropped by one point to 50, according to the latest Business Confidence Survey (BCS) conducted by the State Bank of Pakistan (SBP) and the Institute of Business Administration (IBA).

This decline was influenced by weaker sentiment in both the Industry and Services sectors.

The survey, which marks the 52nd wave of the BCS, revealed a 0.6-point drop in the BCI for the Industry sector, bringing it down to 48.1, while the Services sector saw a one-point decrease, settling at 50.7.

The report also explains that the overall BCI is divided into two sub-indices: the Current Business Confidence Index (CBCI) and the Expected Business Confidence Index (EBCI).

In September, the CBCI fell by 1.6 points to 47.8, largely due to declines in both sectors. The CBCI for the Industry sector dropped by 0.8 points to 46.3, while the Services sector saw a larger decrease of 1.8 points, falling to 48.4.

Looking ahead, business expectations for the next six months also saw a dip. The Expected Business Confidence Index (EBCI) dropped by 0.3 points. The Industry sector’s EBCI fell by 0.4 points to 50, while the Services sector’s confidence slipped by 0.3 points to 53.

The survey further noted a slight decline in positive and neutral responses, with an increase in negative sentiment in the latest wave.

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