Chinese Companies Suffer in Pakistan Due to Security Risks, FX, Bad Rupee: Survey

Chinese companies feel unsafe in Pakistan according to a new survey by the China Chamber of Commerce in Pakistan (CCCPK) released on Sunday. The survey reported a Business Climate Index score of 49.63, just below the optimism threshold of 50. The companies complained of security risks, foreign exchange controls, policy instability, and unstable rupee as major concerns. Security risks are the primary issue. The survey revealed that 83.4 percent of the respondent companies reported a deteriorating situation, poor business operations, and low investment confidence under the China-Pakistan Economic Corridor (CPEC). Foreign exchange restrictions hinder timely payments for 60.4 percent of firms, while 58.3 percent cited inconsistent policies as obstacles. A little over half i.e. 56.3 percent noted that the rupee’s depreciation has reduced their assets when measured in US dollars. Despite these challenges, 52.1 percent of companies maintained stable business volumes, and 33.3 percent reported growth. 70 percent of respondents are optimistic about Pakistan’s economic future, with 47.9 percent expecting stability in order volumes over the next three months. The survey also shows that 58.3 percent of firms plan to retain their workforce while 37 percent might expand production. 39 percent of the surveyed companies foresee economic improvement in the next three months, and 43.8 percent expect it to be stable.