ISLAMABAD: Business sentiment in Pakistan has improved significantly, according to the latest Business Confidence Index (BCI) Survey, Wave 27, released by the Overseas Investors Chamber of Commerce and Industry (OICCI).
Conducted across major business centers in Pakistan during March and April 2025, the survey reflects a notable 16-percentage point jump in business confidence, rising from -5 percent in October–November 2024 to +11 percent.
The announcement followed a meeting between OICCI’s senior leadership and Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held at the Finance Division on Thursday.
Addressing a press conference, OICCI Chief Executive and Secretary General M. Abdul Aleem attributed the improved confidence to greater macroeconomic stability, a decline in inflation, and expectations of more favorable business conditions over the next six months.
“The latest BCI results exceeded expectations, showing positive sentiment across all major sectors,” said Aleem.
“Manufacturing led the rebound, climbing from -3 percent to +15 percent. Retail and Wholesale sectors also showed recovery, improving from -18 percent to +2 percent. The Services sector maintained steady momentum, increasing from +2 to +10 percent.”
While the overall business outlook has improved, Aleem noted that investment sentiment, though better, remained in the negative zone.
“New investment plans rose by 19 percent but still reflect a net negative outlook. This is a concern that needs addressing to further accelerate economic growth and boost large-scale manufacturing, trade, and exports,” he added.
OICCI President Yousaf Hussain emphasized that the strong rebound in business confidence reflects the resilience of Pakistan’s business community.
“Over the past two years, we’ve seen a notable turnaround. The results of Wave 27 demonstrate growing optimism and readiness among businesses to seize new opportunities. Sustaining this momentum requires policy consistency, transparency, and active engagement with stakeholders, including OICCI members,” he said.
According to the survey, 45 percent of respondents expressed optimism about business conditions over the next six months. This sentiment is driven by expectations of improved economic growth, better government policies, an improved investment climate, and enhanced security.
However, 53 percent of respondents reported a negative outlook for the past six months—an improvement from 66 percent in the previous survey. Key concerns include political uncertainty, currency volatility, energy challenges, and trade policy issues.
Foreign investors, represented by randomly selected OICCI members, showed a strong gain in confidence, with their BCI rising from +6 percent to +17 percent. This uptick is largely due to a more favorable global business environment and expectations of increased capital investment in the near future.
Despite the overall positive trend, businesses continue to highlight inflation, taxation, inconsistent government policies, and rupee depreciation as the top challenges—consistent with concerns raised in the previous wave.
The BCI survey, conducted biannually by OICCI, gathers feedback from stakeholders representing approximately 80 percent of Pakistan’s GDP. It includes input from the Manufacturing, Services, and Retail/Wholesale sectors, assessing perceptions at the national, regional, and business entity levels. Face-to-face interviews are conducted in key cities including Karachi, Lahore, Islamabad/Rawalpindi, Peshawar, and Faisalabad.
Earlier during a meeting with the OICCI delegation, Finance Minister Senator Muhammad Aurangzeb welcomed the upward trend in business sentiment, viewing it as a strong indicator of economic stabilization. He reiterated the government’s commitment to maintaining a favorable environment for investment and supporting private sector growth through policy reforms and macroeconomic resilience.
