ISLAMABAD: A newly released survey by the China Chamber of Commerce in Pakistan (CCCPK) highlights significant challenges faced by Chinese companies operating in Pakistan. The survey, titled the “Business Climate Index of Chinese Companies in Pakistan,” recorded a score of 49.63, just below the 50-point mark that separates optimism from pessimism.
The findings, launched with support from the Chinese embassy, emphasize major hurdles such as security risks, difficulties with remittance outflows due to foreign exchange controls, policy instability, and currency depreciation, all of which are impacting business operations.
The survey sampled 48 Chinese firms, representing around 30% of Chinese businesses in Pakistan. It revealed that 83.4% of respondents view the security situation as worsening, with minimal expectation of short-term improvement. Foreign exchange restrictions were reported by 60.4% of firms as a significant obstacle, while 58.3% pointed to issues with policy continuity and implementation.
Despite these challenges, many Chinese companies have managed to maintain stability. Over 52.1% reported steady business volumes, and 33.3% noted operational growth. Optimism remains, with 70% expressing confidence in Pakistan’s economic prospects, buoyed by improving economic indicators such as declining inflation and rising foreign exchange reserves.
Looking ahead, 43.8% of firms expect stability in Pakistan’s economy, while 39% anticipate improvement over the next three months.
