Business sentiment in Pakistan has shown a marked improvement, with the latest Overseas Investors Chamber of Commerce and Industry (OICCI) Business Confidence Index (BCI) reporting an 11-point increase, taking overall confidence to +22%. The Wave 28 survey, released on Wednesday, covers firms representing nearly 80% of the national GDP and indicates both a broad-based recovery and a notable shift toward adopting generative AI technologies across multiple sectors.
According to OICCI, 43% of member companies have already integrated generative AI into operational processes, while 81% anticipate AI playing a significant role in core business functions in the near future. This reflects a growing recognition among Pakistani businesses of technology as a key driver for efficiency, productivity, and competitive advantage.
The services sector recorded its highest confidence score since 2017, rising by 24%, signaling a strong rebound in areas such as IT, finance, and professional services. Retail sentiment improved by 15%, reflecting optimism in consumer demand, while manufacturing posted a modest one-point gain, highlighting a gradual recovery amid ongoing supply-chain and operational challenges. Confidence strengthened across geographies, with metro cities rising from 14% to 23% and non-metro regions shifting from –3% to 19%, indicating an inclusive recovery beyond major urban centers.
OICCI members also displayed increased confidence in their own organizational prospects. The survey shows a jump from +17% in the previous wave to +27% in Wave 28, driven by expectations of investment, expansion of operations, and business development initiatives. Forward-looking indicators corroborate this optimism. The New Orders Index climbed to 41% from 26%, fueled by strong gains in services, which rose from 23% to 47%, followed by retail’s rise from 14% to 41%, while manufacturing edged up from 36% to 37%.
Hiring sentiment has improved alongside operational growth, with the New Jobs Index rising to 16% from 13%, reflecting an increase in recruitment plans, particularly in the services sector. Investment sentiment also turned positive, with the New Investment Index improving from –4% to +12%, indicating renewed capital expenditure in services and manufacturing sectors.
OICCI President Yousaf Hussain emphasized that the survey signals a gradual but tangible improvement in Pakistan’s business outlook after a challenging period. He noted that growing optimism around economic direction, combined with technology adoption and investment intentions, underscores a strategic shift in how businesses are preparing for the next phase of growth.
The Wave 28 survey illustrates a clear trend: Pakistani companies are not only recovering but actively embracing digital transformation through AI integration, while cautiously expanding operations, investing in growth, and hiring talent to meet evolving market demands. The results signal a broader, technology-driven optimism shaping the future of Pakistan’s private sector.
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