Pakistani CEOs Anticipate Significant Economic Improvement Compared to Last Year

Pakistan’s business leadership, including the CEOs of various companies, has expressed optimism about the country’s economic growth. According to PwC’s 28th Annual Global CEO Survey – Pakistan “The Next Leap: Charting the Path to Change”, Pakistani CEOs have shown significant optimism regarding the economic growth of Pakistan, with 83% expecting improvement compared to 49% last year. Regarding global economic growth, 70% expect improvement, compared to 39% last year. This year’s survey includes 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. The CEOs also expressed confidence in the growth of their companies’ revenues in the coming years, with 92% confident of improvement in the next 12 months and 99% confident about growth over the next three years. The majority (54%) do not expect any significant change in their current staffing levels. However, they continue to feel significant exposure to risks such as macroeconomic volatility (46%), inflation (39%), and geopolitical conflict (31%), among others. The proportion of those feeling significant exposure to inflation has decreased compared to last year (39% this year vs. 55% last year). Consistent with last year, many CEOs (44%) believe there is a significant need to reinvent their business models, as their businesses may no longer remain viable beyond 10 years otherwise. Businesses expecting lower viability (10 years or less) cite external factors, such as changes in the regulatory environment and increasing product/service costs, as the top concerns. In contrast, businesses expecting higher viability (more than 10 years) focus on internal factors, such as organizational efficiency and strategic decision-making, as the most influential factors. The need for reinvention has accelerated the pace at which businesses are reallocating both financial (85% of respondents) and human resources (87% of respondents) across their business units. They are focusing on targeting new customer bases, developing innovative products and services, and implementing new pricing models. 43% of companies reported an increase in their market share over the past five years, with 29% experiencing moderate growth and 14% reporting 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 consumer segments. Additionally, 36% of companies have significantly pursued the development of innovative products or services, highlighting a focus on enhancing their offerings to remain competitive. 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. The proportion of respondents anticipating a decrease in headcount has declined. Last year, 13% expected a decrease, while this year, it has dropped to 4%. None of the respondents this year expect a significant or moderate decrease, compared to 2% who expected 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 plan to maintain current staffing levels. However, the overall expectation for an increase in headcount has slightly decreased from 42% last year to 40% this year. The data highlights macroeconomic volatility (46%) and inflation (39%) as the top concerns for companies, emphasizing 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 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. However, concerns regarding geopolitical conflict have increased (+4%), and new threats have emerged. Overall, the proportion of respondents feeling minimally, slightly, or moderately exposed—or who are unsure—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.