Business confidence drops to lowest level in Pakistan: survey

[ghazi52]

.,.,.,

 

[epebble]

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View attachment 896233

So, the remaining 12% did not get the memo that interest may be abolished?

 

[SoulSpokesman]

@epebble

Abolition of interest will help businesses as they are borrowers, no? They will get free capital to do business.

Regards

 

[epebble]

Abolition of interest will help businesses as they are borrowers, no? They will get free capital to do business.

Who wants to loan you money and maybe get it back later for no benefit at all to themselves? That will be true altruism. A society can run on pure altruism only when all are angels, which we are not.

Also, there is this interesting math: Government can order no Nominal interest by Decree, but they cannot change Real interest rate by fiat. Because,

Real Interest Rate = Nominal Interest Rate - Rate of inflation

If you force Nominal interest rate to 0, real interest rate becomes negative. That means, if Rate of inflation is 12% per year, you will be getting a Real interest of -12% per year if you loan someone money.

In any economic system with net negative real interest rate, there will only be consumption and no investment. Which means, there will be an increase in misery (Inflation + unemployment).

 

[alphapak]

PDM is only interested in finishing off their corruption cases and knocking off
anyone who investigates their corruption such as Dr Rizwan and Arshad Sharif.

They have killed many more but who cares as long as Army/ISI get the share of the pie.

 

[HAIDER]

Winter is coming

 

[Enigma SIG]

May be end has occurred, and we are living in hell.


View attachment 895759

Yup.

Eternal Hellistan.

Any country where

a) Electricity goes off without notice
b) Cell phone service goes offline for 2-3 days
c) Transport and Rubbish clean up is missing
d) Police and courts are corrupt

Is not ideal environment for Business


Lack of Electricity and Cellphone costs Millions to Billions to local economy just to please Showbaz sharif


People loose clients if their email is not responded within 2-3 hours

This country isn't fit for living, business to phir aage ki baat hai.

 

[SoulSpokesman]

@epebble

Who wants to loan you money and maybe get it back later for no benefit at all to themselves?

Once Pak abolishes interest, Pakistani citizens/savers wont get any interest at all. So they will loan funds to investors at zero rates, by default, not choice.

In practise what will happen is that Pak savers will give banks a zero interest deposit. Banks in turn will lend to businesses at 0% rate. If the businesses make profit, they will pay a fee equal to ROCE* Loans given to banks. The banks in turn will give the average ROCE they get on their loan less operating expenses as fees to depositors.

A society can run on pure altruism only when all are angels, which we are not.

Pakistanis dont have to be angels. They just have to be good Muslims.

Regards

 

[Clutch]

,.,.

Business confidence drops to lowest level in Pakistan: survey​

Kazim Alam
November 2, 2022


KARACHI: Entrepreneurs are getting increasingly pessimistic about the conditions of their businesses owing to the country’s political and economic situation, according to a Gallup Pakistan survey conducted in the ongoing quarter of 2022.

The Gallup Business Confidence Index showed 65 per cent of business owners believe their businesses are facing bad conditions.

Industrial machines businesses are doing the best out of all types of businesses, with 75pc of them believing that conditions are good. Cloth and garment shops are experiencing the worst level of confidence, with 81pc of them saying business conditions are bad.

Findings of the survey show the Net Future Business Confidence score has worsened by 50pc since the beginning of 2022 and is now at -10pc.




Compared to earlier this year, the number of businesses saying the country is headed in the wrong direction has gone up by 32pc. Less than 15pc of businesses in Punjab, Sindh and Khyber Pakhtunkhwa believe that the country is headed in the right direction.

Similar to the findings of the survey conducted in the first quarter of 2022, the latest poll shows inflation remains the “most-cited” problem that businesses would like the government to solve by the end of this year.

As many as 72pc of the businesses surveyed reported experiencing load shedding every day. A considerable increase in the number of businesses experiencing loadshedding was witnessed in the fourth quarter. About 19pc of the businesses that reported facing load shedding within a day experienced it for two hours, the survey showed.

As many as 81pc of the businesses said they do not believe the court system is fair, impartial and uncorrupted versus 7pc in the first quarter of 2022. More businesses from Balochistan disagree with the idea that the court system is fair, impartial and uncorrupted than any other province, survey results showed.

One-quarter of the businesses surveyed reported their establishment was visited by tax officials, down 12pc from the previous survey.

A sample of more than 700 business owners and managers across Pakistan were asked how well their businesses were doing. After Covid-19 peaked, businesses started to express greater confidence. But this confidence plummeted between the beginning and the end of 2022.

“This sudden change, and a 63pc fall in the Current Business Situation score, may be due to the continuous political instability over the year,” it said.

The survey asked business owners which problems were affecting their businesses considerably. Besides inflation, “customer shortage” was a problem that 8pc of them faced. High taxes were also perceived as a problem by 4pc of businesses.

“Gallup Business Confidence Report for the fourth quarter of 2022 paints a bleak picture. The index values are the worst since Gallup started the project in 2019, which includes Covid-19 times,” said Bilal Ijaz Gilani, executive director of the Gallup Pakistan and chief architect of the Gallup Pakistan Business Confidence Index.

“The report comes after Pakistan faced the worst floods in decades. The business community awaits strong and decisive steps by the government,” he added.

Published in Dawn, November 2nd, 2022

Business confidence drops to lowest level in Pakistan: survey

Gallup survey says inflation, loadshedding worrying business community.

www.dawn.com

Hopefully it all crashes and burns down... The entire economy. Yes there will be pain. Yes, people will suffer...


But from the ashes we will build a new Pakistan that isn't corrupt and run by Patwaris and Dar the convicted fool!

 

[Goritoes]

Because no one offer Fajr ki Namaz in Pakistan, only Army and COAS does offer hence their success