More Pakistani businesses positive about future: survey

Country scores 144.6 points on Dun & Bradstreet’s Business Optimism Index

KARACHI: Increasing business-related queries about Pakistan from international investors have compelled an international commercial data provider to extend its operations to Pakistan.

Dun & Bradstreet (D&B) has launched its globally well-known ‘Business Optimism Index’ (BOI) for Pakistan, according to which businesses in the country are optimistic about their position for 1QCY20.  The composite Business Optimism Score stands at 144.6 points compared to a benchmark neutral value of 100.

“We used to collect data of Pakistani companies located in Dubai,” D&B Pakistan Country Head Nauman Lakhani told The Express Tribune. “We had data of around 100,000 Pakistani companies but looking at the rising demand we [D&B] decided to launch our office in Pakistan.”

As per the report, large companies are relatively more optimistic than small and medium enterprises (SMEs), as the composite score for large companies’ stands at 149.5 points compared to 137.3 points for SMEs. Moreover, companies in the services sector are more hopeful as compared to the trading and manufacturing sectors.

D&B’s BOI - initiated in the early 1900s - will publish a report quarterly, in a bid to measure the pulse of the business community and serve as a tool to assess the position of the business in Pakistan.

The responses of the business situation reflect respondents’ position regarding the current business situation (4QCY19) and forecast business situation (1QCY20). Based on the results, respondents are more optimistic concerning the forecast business situation vis-a-vis to the current business situation.

Around 66% of the respondents expect business situation to be good in the upcoming quarter compared to 42% of respondents in the current quarter.

However, 9% of the respondents expect their business situation to be poor in the upcoming quarter, compared to 16% in the current quarter which is a positive indicator for businesses.

Published in The Express Tribune, February 11^th, 2020.

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