Business sentiment in Pakistan has strengthened, with the latest Overseas Investors Chamber of Commerce and Industry (OICCI) Business Confidence Index (BCI) showing an 11-point increase, taking overall confidence to +22%. The Wave 28 survey, released on Wednesday, covers firms accounting for nearly 80% of national GDP and reports a notable move toward adopting generative AI technologies.
According to OICCI, 43% of its members have already begun integrating generative AI into their operations, while 81% expect AI to assume major business functions in the near future. The services sector recorded its highest confidence score since 2017, rising by 24%. Retail sentiment improved by 15%, while manufacturing posted a marginal one-point gain. Confidence increased across geographies as well, with metro cities rising from 14% to 23% and non-metro areas shifting from –3% to 19%.
OICCI members showed a significant improvement in their own outlook, with confidence rising from +17% in the previous wave to +27% in Wave 28, driven by expectations of investment and operational expansion.
Forward-looking indicators also strengthened. The New Orders Index increased to 41% from 26%, led by a surge in the services sector from 23% to 47%, followed by retail’s rise from 14% to 41%, while manufacturing edged up from 36% to 37%. Hiring sentiment improved as the New Jobs Index rose to 16% from 13%, supported by a strong increase in services-sector hiring plans.
Investment sentiment turned positive, with the New Investment Index improving from –4% to +12%, reflecting robust recoveries in services and manufacturing.
OICCI President Yousaf Hussain said the survey reflects a gradual improvement in business outlook after a difficult period. He said the results show growing optimism around Pakistan’s economic direction despite ongoing challenges.
Despite the overall improvement, survey respondents cited inflation, taxation, rupee volatility, corruption and inconsistent government policies as continuing risks to business stability.
