Pakistan’s business confidence has strengthened sharply, rising 11 percentage points to over 22%, according to the latest Business Confidence Index released Wednesday by the Overseas Investors Chamber of Commerce and Industry.
The Wave 28 survey, which covers companies representing nearly 80% of the country’s GDP, shows a broad improvement across sectors and regions. The report also highlights a rapid shift toward innovation, with 43% of OICCI members now using generative AI tools and 81% expecting AI to take over key business functions in the near future.
In a notable development, the services sector posted its highest score since 2017, recording a 24-point uplift. The retail sector followed with a 15-point increase, while manufacturing saw a modest 1-point rise. Metro-area confidence climbed from 14% to 23%, and non-metro sentiment turned positive, rising from -3% to 19%.
Overall confidence among OICCI members rose from 17% in the previous survey to 27%, a gain the organization attributed to expectations of new investment and operational expansion in the months ahead.
Forward-looking indicators showed similar momentum. The New Orders Index jumped to 41% from 26%, led by the services sector’s rise from 23% to 47% and retail’s increase from 14% to 41%. Manufacturing edged up from 36% to 37%. Hiring expectations improved as well, with the New Jobs Index rising to 16% from 13%, supported by a 21-point increase in services-sector hiring plans, which rose from 8% to 29%.
Investment sentiment also turned positive. The New Investment Index improved from -4% to +12%, reflecting strong rebounds in both services and manufacturing.
OICCI President Yousaf Hussain said the findings show a meaningful shift after a turbulent period for the economy.
“The results of Wave 28 point to a cautiously improving business climate,” he said. “The performance of the services sector and the strong forward-looking expectations show that business stakeholders are reassessing Pakistan’s economic direction with greater optimism. While challenges persist, the willingness of businesses to invest and expand is a promising sign for the months ahead.”
OICCI Secretary General and Chief Executive M. Abdul Aleem said the data signals a broad-based recovery but warned that manufacturing remains under pressure.
“Wave 28 points to a broad-based recovery, with confidence strengthening across services, retail, and even in non-metro cities that previously recorded negative sentiment,” he said. “However, the manufacturing sector’s marginal rise highlights the need for focused efforts to support industrial competitiveness and cost stability.”
Despite the sharp rise in overall confidence, businesses identified taxation, inflation, rupee devaluation, corruption and inconsistent policies as the biggest threats to long-term economic stability.
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