Nearly half of Pakistani firms earn between $100 million to $1 billion: survey

A survey by PricewaterhouseCoopers (PwC) has revealed that nearly half of Pakistani companies generate annual revenues between $100 million and $1 billion, while more than half of corporate sector CEOs have held their positions for five years or less.

According to PwC, 70% of surveyed CEOs lead publicly listed companies, while 30% head private firms. Notably, 51% of public companies reported that family members hold over 32% of their voting rights, highlighting strong family influence in corporate governance.

Corporate landscape and CEO trends

The survey highlights that 36% of companies employ between 1,000 and 4,999 workers, reflecting the presence of medium to large enterprises in Pakistan. Financially, 39% of firms report revenues below $100 million, while only 14% generate $1 billion or more annually.

Regarding market dynamics, 29% of respondents noted that the top four firms in their industry control 21-40% of market revenue, indicating diverse competitive pressures.

The survey also underscores a significant gender gap, with 97% of respondents being male and only 3% female.

In terms of leadership tenure, 51% of CEOs have held their roles for five years or less, with an average tenure of eight years.

Looking ahead, 62% of CEOs expect to remain in their roles for five years or less, with 61% leading parent companies and 23% overseeing country subsidiaries within multi-entity corporations.

AI adoption: trust and profitability expectations

The survey finds mixed sentiment toward generative AI among Pakistani businesses. According to PwC, 30% of respondents expressed moderate trust in AI’s potential to improve operations, 26% remain skeptical, citing data privacy concerns and workflow disruptions, and 28% exhibit high trust, indicating confidence in AI’s benefits.

When asked how generative AI will impact profitability in the next 12 months, 38% anticipate an increase, down slightly from 39% last year. However, 2% now predict profits will rise by more than 25%, while 50% expect little to no change, up from 48% last year.
This cautious shift suggests businesses are developing a more nuanced understanding of AI’s capabilities and its potential impact on profitability.

Climate change: a low priority

Despite Pakistan’s high vulnerability to climate change, many corporate leaders still rank climate investment as a low to moderate priority, the survey finds.

The report notes that businesses have begun linking incentive compensation to sustainability metrics, but efforts remain insufficient. Pakistan, which experienced record floods in 2022, is urged to invest at least 1% of GDP annually in climate resilience, a recommendation from the International Monetary Fund (IMF).

While regulatory pressure remains low, the survey suggests that leading firms may need to prioritize climate investment even in the absence of external demands.