Business confidence in Pakistan is strengthening, with the Overseas Investors Chamber of Commerce and Industry (OICCI)’s latest Business Confidence Index (BCI) showing an increase of 11 points, with overall confidence at +22%. The Wave 28 survey, released Wednesday, covers companies representing nearly 80% of the country’s GDP and reports notable moves toward adoption of generative AI technology.
According to OICCI, 43% of its members have already started integrating generative AI into their operations, and 81% expect AI to assume key business functions in the near future. The services sector rose 24%, posting its highest confidence score since 2017. Retail sentiment improved by 15%, while manufacturing rose just 1 point. Confidence increased across regions as well, with metropolitan areas rising from 14% to 23% and non-metropolitan areas moving from -3% to 19%.
OICCI members showed a significant improvement in their outlook, with confidence increasing from +17% in the previous wave to +27% in wave 28 due to expectations for investment and business expansion.
Forward-looking indicators have also been strengthened. The new orders index rose from 26% to 41%. This was led by a jump of 23% to 47% in the services sector, retail rose from 14% to 41%, while manufacturing rose slightly from 36% to 37%. Employment sentiment improved, with the new jobs index rising from 13% to 16%, supported by strong growth in service sector hiring plans.
Reflecting the strong recovery in services and manufacturing, the new investment index improved from -4% to +12% and investment sentiment turned positive.
OICCI Chairman Yousaf Hussein said the survey reflects the gradual improvement in the economic outlook after a difficult period. He said the results showed growing optimism about Pakistan’s economic direction despite ongoing challenges.
Despite overall improvements, survey respondents cited inflation, taxes, rupee fluctuations, corruption, and inconsistent government policies as continuing risks to business stability.
