Most firms struggling due to high cost of doing business: survey

KARACHI: Nearly 75 percent of businesses have been struggling with increased costs over the last decade.

This was stated by the highest proportion of respondents, but others expressed their worries about decreased income, while responding to the new Global Economic Conditions Survey (GECS) from ACCA (the Association of Chartered Certified Accountants) and IMA (Institute of Management Accountants).

A similar proportion also highlighted foreign exchange volatility, as uncertainty and glimpses of recession dominate the latest economic outlook.

“Problems in securing prompt payment” have peaked in four years. So, more organisations may be experiencing cash-flow difficulties. “Problems accessing finance” have also risen. This has led to aggressive tightening of monetary policy in 40 years, so corporate-liquidity will be impacted, consistent with slower global growth.

Head of ACCA Pakistan, Assad Hameed Khan, said: “Our survey shows ongoing challenges in the global economy, reflecting continued economic fallout from the Russia-Ukraine conflict. It will lead to a cost-of-living crisis in Pakistan and its region. Central banks must provide responsive policies in the months ahead to ease inflation; otherwise, businesses may face challenging times in the next few months.”

Copyright Business Recorder, 2022