Karachi: Pakistan's business confidence has risen significantly, according to the latest OICCI Business Confidence Index (BCI) - Wave 28. The survey reveals an 11 percentage-point increase, bringing the overall confidence level to +22 percent. This improvement is driven by a notable surge in the services sector, recording its highest growth since 2017, and a growing adoption of generative AI technologies among businesses.
The survey, representing nearly 80 percent of the country's GDP, indicates a broad-based geographical recovery. Metro areas experienced a confidence boost from 14 percent to 23 percent, while non-metro locations saw a rise from -3 percent to 19 percent. The retail sector also improved by 15 percent, and manufacturing saw a modest 1 percent increase.
OICCI members reported a significant rise in sentiment, with their confidence growing from plus 17 percent to plus 27 percent. This growth is attributed to a positive outlook on investment and expansion opportunities.
Forward-looking indicators are also promising, with the New Orders (Expansion) Index climbing to 41 percent from 26 percent. The services sector led this growth, jumping from 23 percent to 47 percent, and the retail sector increased from 14 percent to 41 percent. The New Jobs Index rose to 16 percent, driven by increased hiring expectations, particularly in the services sector.
Investment sentiment showed a positive turnaround, with the New Investment Index improving from minus 4 percent to plus 12 percent. This rebound is led by the services and manufacturing sectors.
OICCI President Yousaf Hussain described the findings as a constructive shift after a challenging economic period. He emphasized the improving business climate, particularly in the services sector, as a sign of optimism among business stakeholders.
OICCI Secretary General M. Abdul Aleem highlighted the broad-based recovery across services, retail, and non-metro areas. He noted the need for focused efforts to support the manufacturing sector, which saw only marginal gains.
Despite the positive trends, the survey respondents identified ongoing challenges, including taxation, inflation, rupee devaluation, corruption, and inconsistent government policies, as key concerns threatening sustained business growth.