76% of Pakistani CEOs expect economy to improve in next 12 months: PwC survey

Three-quarters of Pakistani business leaders are optimistic about domestic economic growth this year, even as they worry about macroeconomic volatility, climate risks, and whether they are adopting artificial intelligence fast enough.

According to PwC's 29th Annual Global CEO Survey released on Tuesday, 76% of the CEOs expect the domestic economy to improve over the next 12 months. Half of all respondents anticipate moderate growth in the range of 2.1% to 4%, while only 7% expect any level of decline.

The figure marks a notable shift from recent years. In 2024, only 49% of Pakistani CEOs expected the economy to improve; that number surged to 83% in 2025 before settling at 76% this year — still well above the 2024 trough.

The survey, conducted from October to November 2025, collected responses from 68 Pakistani CEOs across 16 industries, representing both publicly listed and privately owned companies. The findings form part of PwC's broader global survey of 4,454 chief executives across 95 countries and territories.

Despite the optimism, Pakistani CEOs identified a cluster of serious threats.

Macroeconomic volatility, climate change, and geopolitical conflict each tied as the top concerns, with roughly one in three CEOs reporting high or extreme exposure to each. When moderate exposure is included, nearly 80% of respondents said they feel at least somewhat vulnerable to macroeconomic risks.

Climate change, in particular, has risen sharply as a business concern. The survey notes that Pakistan ranks among the top eight nations most affected by climate-related disruptions globally — and awareness of that vulnerability appears to be filtering into corporate boardrooms.

Yet awareness is outpacing action: while 32% of CEOs reported high or extreme climate exposure, only 13% to 24% said their companies have defined processes to account for climate risks in product design, supply chains, or capital allocation.

AI: all talk, little action

Artificial intelligence is the most prominent item on the strategic agenda as 47% of CEOs cited keeping up with technological change, including AI, as their top concern. Yet actual deployment remains thin.

Between 63% and 74% of Pakistani companies report limited or no AI application across key business functions. Only 7% to 13% have deployed AI to a large extent in any area. A striking 58% said their most-used AI tool does not have access to all company data, and 40% said their organisation lacks a clearly defined AI roadmap.

The gap between aspiration and execution shows up in the financial results too.

A full 79% of Pakistani companies reported little to no revenue impact from AI over the past year, compared to 65% globally. Globally, about 30% of CEOs report revenue increases from AI — roughly double the Pakistani rate of 14%.

On jobs, the survey carries a stark warning for young professionals: 42% of CEOs expect AI to reduce junior-level employment over the next three years, representing a net decrease of 30 percentage points. Senior leadership positions are expected to remain largely insulated.

Cross-sector ambitions

On the reinvention front, more than half of Pakistani companies — 51.5% — have entered new sectors or industries in the last five years, above the global average of 42%. Industrial manufacturing and technology each topped the list of sectors CEOs plan to expand into, followed by health services, mining and metals, and retail.

Despite the appetite for growth, most companies plan to pursue it organically: 56% of CEOs said they have no major acquisitions planned in the next three years.