Business Confidence Jumps to +22% as Services Sector Hits 7-Year High: OICCI

Pakistan’s business confidence has posted a strong rebound, with the latest OICCI Business Confidence Index rising 11 points to reach plus 22 percent. A key highlight of the survey is the sharp surge in services sector sentiment, which recorded its highest score since 2017, signalling renewed economic activity and improved expectations for the months ahead. The Wave 28 survey, conducted by the Overseas Investors Chamber of Commerce and Industry, covers businesses representing nearly 80 percent of Pakistan’s GDP. It also reveals a rapid shift toward digital transformation, with 43 percent of member companies already using generative artificial intelligence tools and 81 percent expecting AI to take over core business operations soon. The latest results show broad-based momentum across sectors and regions. Retail confidence rose by 15 percent, while manufacturing improved slightly by 1 percent. Business sentiment in metro cities climbed from 14 percent to 23 percent, and non-metro areas saw a dramatic recovery from negative 3 percent to plus 19 percent. OICCI members themselves recorded confidence at plus 27 percent, up from plus 17 percent in the previous wave. Forward-looking indicators reflect similar optimism. The New Orders Index jumped to 41 percent from 26 percent, led by the services sector’s rise from 23 percent to 47 percent and retail’s surge from 14 percent to 41 percent. Hiring expectations strengthened as well, with the New Jobs Index increasing to 16 percent, largely due to a 21-point boost in the services sector. Investment sentiment has rebounded sharply, with the New Investment Index improving from negative 4 percent to plus 12 percent. Commenting on the findings, OICCI President Yousaf Hussain said the numbers reflect “a cautiously improving business climate” following a turbulent period. He added that the willingness of companies to expand and invest indicates growing confidence in Pakistan’s economic direction. OICCI Secretary General and CEO M. Abdul Aleem said the results signify a “broad-based recovery” across services, retail, and non-metro cities, though he noted that manufacturing still requires targeted policy support to address cost pressures and competitiveness challenges. Despite the positive trajectory, businesses highlighted persistent concerns such as heavy taxation, high inflation, rupee volatility, corruption, and inconsistent government policy. These challenges remain structural obstacles to sustained long-term economic recovery.