Pakistani CEOs express optimism about economic growth

Pakistani CEOs have expressed optimism about the country's economic growth, with 83% of respondents expecting improvement.

According to PwC Annual Global CEO Survey, this level of optimism surpasses global expectations, where only 70% anticipate slight to moderate growth.

The PwC Annual Global CEO Survey, a flagship initiative capturing perspectives of chief executives worldwide, has included insights from Pakistani CEOs for the second consecutive year.

The survey reflects extended optimism among Pakistani CEOs regarding economic growth, a sharp contrast to last year's sentiment.

Last year, 28% of Pakistani CEOs anticipated a decline in economic growth, while 49% expected improvement. This year, the proportion of those expecting a decline has dropped to 9%, with those anticipating improvement surging to 83%.

The survey highlights macroeconomic volatility (46%) and inflation (39%) as top concerns for Pakistani companies, indicating a focus on economic stability and cost management. Other significant concerns include geopolitical conflicts (31%) and workforce skill availability (21%).

While cyber risks (16%), climate change (14%), technological disruption (14%), and social inequality (10%) are also concerns, they are seen as less immediate threats.

Perceived exposure to key threats such as inflation, macroeconomic volatility, climate change, and social inequality has decreased compared to last year. However, concerns regarding geopolitical conflict have risen, and new threats have emerged.

Revenue growth expectations over the next 12 months have seen a decline in overall confidence. Last year, 55% of respondents were very or extremely confident about their company's revenue growth prospects, compared to 44% this year.

In contrast, confidence in revenue growth prospects over the next three years has improved from 63% last year to 68%.

The proportion of respondents anticipating a decrease in headcount has also declined from 13% last year to 4% this year. The percentage of those expecting little to no change in headcount has increased from 45% to 54%, suggesting that most companies plan to maintain current staffing levels.

The overall expectation for an increase in headcount has slightly decreased from 42% last year to 40%.

Overall, while short-term confidence has decreased, long-term confidence in company revenue growth prospects has strengthened, indicating a more positive outlook in the medium term.