Economic Reporter :
The country’s business confidence index (BCI) has been grind down at a very low level in the fiscal year 2019-20 due to the uncertainties over the Covid-19 pandemic, according to a study conducted by Light Castle Partners, a consulting firm.
The study revealed on Thursday found the confidence index -19.27 out of 100, a sharp decline from the previous years.
The study was conducted based on in-depth interviews with 59 business leaders from March 2020 to April 2020.
It said that not only the Covid-19, even prior to emergence of the pandemic, business sentiments were overshadowed by concerns pertaining to the banking sector liquidity crunch and the dire consequences of NPLs in commercial banks; declining competitiveness in RMG; and infrastructural bottlenecks.
“After the pandemic struck, not only did the prevailing challenges intensify, but also led to weaker domestic demand, supply chain disruptions, limitations in forward linkage, and scarcity of credit,” said the study, released on Thursday in a virtual programme.
The previous editions of the report saw the private sector confidence at +43 (2018) and +39 (2017) respectively. The index is determined on a scale of -100 to +100 using Harmonized Expectation Indicator (HEI).
Light Castle Partners annually conducts ‘Light Castle Business Confidence Index’ – a study for gauging the business sentiments of private sector leaders across myriad sectors, having a notable contribution to the country’s economy.
However, according to the respondents, the top three industries to hold the most promise in 2019-20 were found to be pharmaceuticals, agriculture and agro-processing and, ICT and ITES.
Reasons for this include structural and competitive sectoral strengths and alignment with anticipated changes in consumers’ lifestyles. Interestingly, selection of these top three sectors remains unchanged since the 2017-18 BCI, the study report said.
According to the findings, confidence in the primary sector debilitated markedly due to the perceived disequilibrium of the economy, unfavourable price distribution, and limited access to credit across the agriculture value chain.
The secondary sector experienced relatively better confidence than the primary ones; however, it has been encumbered by high import dependency on raw materials, unfavourable government policies and regulation, lack of credit access, and inadequate infrastructure, the study revealed.
The country’s business confidence index (BCI) has been grind down at a very low level in the fiscal year 2019-20 due to the uncertainties over the Covid-19 pandemic, according to a study conducted by Light Castle Partners, a consulting firm.
The study revealed on Thursday found the confidence index -19.27 out of 100, a sharp decline from the previous years.
The study was conducted based on in-depth interviews with 59 business leaders from March 2020 to April 2020.
It said that not only the Covid-19, even prior to emergence of the pandemic, business sentiments were overshadowed by concerns pertaining to the banking sector liquidity crunch and the dire consequences of NPLs in commercial banks; declining competitiveness in RMG; and infrastructural bottlenecks.
“After the pandemic struck, not only did the prevailing challenges intensify, but also led to weaker domestic demand, supply chain disruptions, limitations in forward linkage, and scarcity of credit,” said the study, released on Thursday in a virtual programme.
The previous editions of the report saw the private sector confidence at +43 (2018) and +39 (2017) respectively. The index is determined on a scale of -100 to +100 using Harmonized Expectation Indicator (HEI).
Light Castle Partners annually conducts ‘Light Castle Business Confidence Index’ – a study for gauging the business sentiments of private sector leaders across myriad sectors, having a notable contribution to the country’s economy.
However, according to the respondents, the top three industries to hold the most promise in 2019-20 were found to be pharmaceuticals, agriculture and agro-processing and, ICT and ITES.
Reasons for this include structural and competitive sectoral strengths and alignment with anticipated changes in consumers’ lifestyles. Interestingly, selection of these top three sectors remains unchanged since the 2017-18 BCI, the study report said.
According to the findings, confidence in the primary sector debilitated markedly due to the perceived disequilibrium of the economy, unfavourable price distribution, and limited access to credit across the agriculture value chain.
The secondary sector experienced relatively better confidence than the primary ones; however, it has been encumbered by high import dependency on raw materials, unfavourable government policies and regulation, lack of credit access, and inadequate infrastructure, the study revealed.
