Pakistan’s business sector is showing signs of recovery, according to the latest survey by the Overseas Investors Chamber of Commerce and Industry (OICCI). The Business Confidence Index rose 11 points to reach +22 percent, indicating improved optimism among companies.
A major highlight of the survey is the strong performance of the services sector, which recorded its highest score since 2017. Experts say this reflects renewed economic activity and stronger expectations for the months ahead.
The Wave 28 survey covers companies representing nearly 80 percent of Pakistan’s GDP. It also shows a significant shift toward digital transformation, with 43 percent of businesses already using AI tools and 81 percent expecting AI to play a central role in operations soon.
The results show positive momentum across multiple sectors. Retail confidence rose by 15 percent, while manufacturing saw a modest increase of 1 percent. Metro cities reported a jump in confidence from 14 percent to 23 percent, and non-metro areas recovered from negative 3 percent to +19 percent. OICCI members themselves reported +27 percent confidence, up from +17 percent in the previous wave.
Forward-looking indicators also show optimism. The New Orders Index increased to 41 percent from 26 percent, led by services rising from 23 percent to 47 percent. Retail surged from 14 percent to 41 percent. Hiring expectations strengthened, with the New Jobs Index rising to 16 percent, mainly due to services. The New Investment Index improved from -4 percent to +12 percent.
OICCI President Yousaf Hussain said the results reflect a “cautiously improving business climate” after a turbulent period. He added that the willingness of companies to expand shows growing confidence in Pakistan’s economy.
OICCI Secretary General M. Abdul Aleem said the survey signals a broad-based recovery across services, retail, and non-metro areas. However, he noted that manufacturing still needs support to address costs and competitiveness.
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Despite the positive trend, businesses remain concerned about high taxation, inflation, rupee volatility, corruption, and inconsistent government policies. These challenges continue to affect long-term economic growth.
