Business sentiment in Pakistan has shown a notable improvement, with the latest Overseas Investors Chamber of Commerce and Industry Business Confidence Index reaching its highest level since 2017. The Wave 28 survey, covering firms that account for nearly 80 percent of the country’s GDP, reported an overall increase of 11 points in confidence, bringing the score to +22 percent. Much of the optimism stems from the services sector, which recorded its highest confidence score in eight years, rising 24 percent, while retail sentiment improved by 15 percent and manufacturing showed a modest one-point gain. Geographically, metro cities saw confidence rise from 14 percent to 23 percent, and non-metro areas moved from –3 percent to 19 percent, reflecting a broader recovery in business sentiment across Pakistan.
The survey highlighted strong adoption of generative AI technologies among OICCI members. About 43 percent of respondents have already integrated AI into operations, while 81 percent expect it to take on major business functions in the near future. This growing reliance on AI reflects an increasing recognition of its potential to enhance productivity and operational efficiency across multiple sectors. Forward-looking indicators such as the New Orders Index also strengthened, moving from 26 percent to 41 percent, largely driven by services, which surged from 23 percent to 47 percent. Retail orders rose from 14 percent to 41 percent, and manufacturing edged up slightly from 36 percent to 37 percent. The New Jobs Index rose to 16 percent from 13 percent, supported by improved hiring plans in the services sector.
Investment sentiment in Pakistan turned positive, with the New Investment Index rising from –4 percent to +12 percent, reflecting recovery in both services and manufacturing sectors. Confidence among OICCI members regarding their own business outlook increased from +17 percent in the previous wave to +27 percent, signaling stronger expectations for investment, operational expansion, and future growth. According to OICCI President Yousaf Hussain, the results demonstrate a gradual improvement in business outlook after challenging periods. He noted that optimism is growing around the economic direction of Pakistan despite ongoing risks.
Survey respondents, however, emphasized that inflation, taxation, rupee volatility, corruption, and inconsistent government policies continue to pose challenges to business stability. While the overall sentiment shows clear progress, sustaining growth and confidence will require effective management of these risks alongside further adoption of technological innovations such as AI. The Wave 28 survey reflects both the resilience of Pakistan’s private sector and its increasing readiness to leverage technology to strengthen operations, expand investment, and drive economic recovery.
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