Business Confidence Surges as Pakistan’s Economic Outlook Brightens

Islamabad: The Overseas Investors Chamber of Commerce and Industry (OICCI) has announced a significant upturn in business confidence in Pakistan, according to the results of its Business Confidence Index (BCI) Survey – Wave 27. Conducted in March and April 2025, the survey revealed a 16-percentage point improvement, shifting from a negative 5 percent to a positive 11 percent. This positive trend was highlighted during a meeting between OICCI’s senior leadership and Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

The survey attributes this surge in business confidence to macroeconomic stability, reduced inflation, and an anticipated improvement in business conditions over the next six months. The Manufacturing sector exhibited the most substantial recovery, moving from a negative 3 percent to a positive 15 percent. Meanwhile, the Retail/Wholesale sectors improved from negative 18 percent to positive 2 percent, and the Services sector increased from 2 percent to 10 percent.

Finance Minister Muhammad Aurangzeb emphasized the government’s commitment to fostering a favorable investment environment and supporting private sector growth. OICCI President Yousaf Hussain noted the resilience of Pakistan’s business sector and its readiness to embrace emerging growth opportunities, urging for greater policy consistency and stakeholder engagement.

The BCI Wave 27 survey indicated that 45 percent of respondents expressed optimism for the next six months, driven by economic growth, improved government policies, a favorable investment climate, and a stable security situation. Despite the positive outlook, 53 percent of respondents reported a negative perception of business conditions over the past six months, a notable improvement from 66 percent in the previous survey.

Foreign investors showed increased confidence, with the BCI rising from positive 6 percent to 17 percent, due to a better global business climate and expectations of increased capital investment. OICCI Chief Executive M. Abdul Aleem highlighted notable gains in employment prospects, expansion plans, and investment expectations, particularly in the Manufacturing and Retail sectors.

Looking forward, respondents identified inflation, taxation, inconsistent government policies, and rupee devaluation as key threats. These concerns remain consistent with previous surveys, indicating ongoing challenges. The OICCI BCI survey, conducted biannually, reflects the views of business stakeholders representing nearly 80 percent of Pakistan’s GDP, covering key sectors and regional perceptions.