Pakistan’s business confidence has improved significantly over the past six months, with existing foreign and local investors showing a clear shift toward optimism, according to the latest survey by the Overseas Investors Chamber of Commerce and Industry (OICCI). The overall Business Confidence Index rose to 22%, nearly doubling from 11% in the previous reading, reflecting stronger sentiment across key sectors of the economy.
The services sector recorded the sharpest improvement, rising to 34% from 10%, marking its highest level since 2017. Retail and wholesale confidence also improved, climbing to 17% from just 2%, while the manufacturing sector remained strong at 37%, showing stability and sustained momentum in industrial activity. These gains indicate that business conditions are becoming more supportive for investors and enterprises operating in Pakistan.
Confidence has strengthened across both major cities and smaller regions. Metro areas reported confidence levels at 23%, improving from 14%, while non-metro regions saw a sharp rise to 19%, reflecting a strong rebound of sentiment outside major urban centres. Looking ahead, expectations for the next six months are also positive, with 54% of survey participants expecting business conditions to improve, up from 45% previously.
Growth indicators within businesses are showing clear upward trends. New orders and business expansion plans rose to 41% from 26%, while new investment intentions moved into positive territory at 12%, compared to a negative 4% earlier. Job creation plans have also accelerated, with 16% of firms indicating plans to hire more workers, up from 13%, suggesting growing confidence in future demand.
Foreign investors emerged as the most optimistic group in the survey. OICCI member companies reported confidence levels at 27%, up from 17%, while global-level confidence stood at 49% compared to 21% earlier. City-level confidence rose to 37% from 21%, and company-level outlook increased to 46% from 29%. Return on investment expectations also improved to 39% from 22%, showing that investors see stronger profitability prospects in Pakistan’s market.
Several factors have contributed to this rise in business confidence. Improving macroeconomic stability, steadier foreign exchange conditions, better law and order, and more consistent policy direction have strengthened the investment climate. Improvements in the energy sector and a better global perception of Pakistan’s economy have also played a key role in boosting sentiment among both domestic and international investors.
A major digital shift is also supporting business optimism. The survey reveals that 43% of OICCI member companies are already using generative artificial intelligence tools, while 81% expect major functional adoption in coming months. This growing focus on digital transformation and AI-powered innovation is helping businesses improve efficiency, productivity, and competitiveness in both local and global markets.
Overall, the survey shows that pessimism is declining across sectors and regions, while confidence continues to rise. Existing foreign investors are leading this positive shift, indicating that Pakistan is moving from a recovery phase into a broader expansion cycle supported by stronger fundamentals and increasing digital adoption across industries.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.