Business Leadership Optimistic About Economic Growth: Survey  

Pakistan’s business leadership including the CEOs of different companies expressed their optimism about the economic growth of the country.   According to PwC’s 28th Annual Global CEO Survey – Pakistan “The Next Leap: Charting the Path to Change”, Pakistani CEOs significantly extended optimism about the economic growth of Pakistan (83% expecting improvement vs 49% last year).   With regards to global economic growth, 70% expect improvement as compared to 39% last year. This year’s survey features participation from 70 CEOs in Pakistan, representing a wide array of companies, industries, and sectors.   Among the respondents, 70% are CEOs of publicly listed companies, while the remaining 30% lead privately owned businesses. They also seem confident about growth of their companies’ revenues in the coming years (92% confident of improvement in the coming 12 months and 99% confident about such growth in the coming 3 years) with the majority (54%) not expecting any significant change in their current staffing levels. Yet, they continue to feel significant exposure of their businesses to the risks of macroeconomic volatility (46%), inflation (39%) and geopolitical conflict (31%), among others. The proportion of those feeling significant exposure to inflation last year has, however, decreased as it was 55% last year.   Consistent with the last year, many of the CEOs (44%) believe there is a significant need to reinvent their business models as their businesses shall no longer remain viable beyond 10 years otherwise.   The survey notes that businesses expecting lower viability (10 years or less) consider external factors (changes in regulatory environment and increasing products/services costs being the top two), whereas those expecting higher viability (more than 10 years) consider internal factors (organisational efficiency and correct strategic choices being the top two) as the factors which most influence such viability.   The need to reinvent seems to have increased the pace at which businesses are reallocating both their financial (85% respondents reallocating some resources) and human resources (87% respondents reallocating some resources) across their business units and focusing on, among others, targeting new customer base, developing innovative products and services, and implementing new pricing models. Business Growth 43% of companies reported an increase in their market share over the past five years, with 29% seeing moderate growth and 14% experiencing significant growth.   Meanwhile, 39% have maintained stable market share, and 15% have experienced a decline. 40% of businesses have targeted a new customer base to a large or very large extent, reflecting efforts to expand market reach and attract new segments of consumers. 36% of companies have pursued the development of innovative products or services to a significant extent, highlighting a focus on enhancing their offerings to remain competitive in their respective markets. Comparatively, only 33% of companies have adopted new pricing strategies to a large or very large extent.   Similarly, 33% of businesses are exploring new routes to market to a large or very large extent, suggesting that while some companies are making strategic shifts in market access, there is still room for further exploration and reinvention. Staff Retention The proportion of respondents anticipating a decrease in headcount has declined –last year, 13% expected a decrease while this year it has dropped down to 4%. None of the respondents this year expect a significant or moderate decrease, compared to 2% expecting a significant decrease last year.   The percentage of respondents expecting little to no change in headcount has increased from 45% last year to 54% this year, suggesting that most companies are planning to maintain current staffing levels. Moreover, the overall expectation for an increase in headcount has slightly decreased from 42% last year to 40% this year. Issues and Challenges The data highlights macroeconomic volatility (46%) and inflation (39%) as the top concerns for companies, suggesting a focus on economic stability and cost management. Geopolitical conflicts (31%) and workforce skill availability (21%) are also significant concerns, indicating a need for strategic planning in these areas.   While concerns about the threats of cyber risks (16%), climate change (14%), technological disruption (14%), and social inequality (10%) are present, they are perceived as less immediate threats compared to economic factors. Perceived exposure to key threats, such as inflation (-16%), macroeconomic volatility (-1%), climate change (-10%), and social inequality (-8%) has decreased compared to last year, while concerns regarding geopolitical conflict have increased (+4%) and new threats have emerged.   Overall respondents feeling minimally, slightly, or moderately exposed, or who don’t know, has decreased from 32% last year to 29% this year, indicating a slight increase in the overall perception of exposure to threats.   The Survey explores essential concepts of identifying emerging trends and effectively managing resources to sustain and generate new value. It provides an in-depth look at the enduring forces shaping the business landscape by examining macroeconomic trends, impact of reinvention, and opportunities for transformation and sustainability through AI and climate actions.