KCCI economic survey shows business sentiments souring

Sentiments among small and big business houses were recorded souring in a wide scale survey before the COVID-19 pandemic that annihilated any iota of expectation about the economic recovery, KCCI’s report has revealed. The survey of 1,103 unique manufacturers, service providers and traders conducted between 1st Jan’20 and 15th Mar’20, found that with the exception of a few institutions, a large majority of Karachi-based businesses experienced at least some degree of friction in the pace of business activities in 2019, regardless of the sector to which they belong to and that they also have signified low expectations for 2020. 50% companies claimed to have reduced the number of employees in 2019 while as a consequence of the outbreak and disaster caused by the coronavirus pandemic, a sharp growth in unemployment is being anticipated. After analyzing a number of factors, the report concluded rupee depreciation, unprecedented rise in utility costs and outdated and complex tax system are the biggest challenges for businesses. The survey report said that the people of Karachi have asked the govt. to refrain from sudden changes in policies, indulge in deliberations with policy stakeholders and consider setting up a one window solution for businessmen.