State Bank of Pakistan (SBP) regulates the monetary and credit system of Pakistan and fosters its growth in the best national interest with a view to securing monetary stability and fuller utilization of the country’s productive resources. Like many other central banks, it weighs up the public and firms perceptions about prevailing and expected economic condition, as an important part of its monetary policy formulation process.
For this purpose, it conducts various surveys, including Consumer Confidence Survey (CCS) and Business Confidence Survey (BCS) after every two months. CCS is the telephonic survey of households that are selected randomly across the country, and provides the information on “what people are thinking” about the economy. BCS is the telephonic survey of firms and provides the information on “what firms are thinking “about the business conditions in the country.
Policy makers around the world use Business Confidence Surveys (BCS) as leading indicator for economic activity as these surveys are particularly suitable for monitoring and forecasting the short term changes in the economy. Especially, a forward looking monetary policy requires input on expectations of different agents. Conventional data is often available with long lags; business activity indicators, if timely available, provide comfort to the policy makers for analyzing the current situation and take appropriate policy actions to avert financial and other economic crises. These surveys also supplement the available quantitative data by providing motives and expectations behind their actions. A reliable system of qualitative short-term indicators can therefore be seen as a valuable complement to the system of quantitative statistics.
SBP also conducts other surveys, like Wage and price setting survey, Bank lending survey, etc., which are important for policy making.
The results of these surveys are disseminated for general information only. These are opinions of public and businesses, and may not be considered either as SBP views or as endorsement by SBP.