Pakistan’s business confidence hits 22%, services sector leads growth

December 03, 2025 (MLN):  Pakistan’s business confidence hits high amid AI adoption as business sentiment showed a strong rebound, driven by optimism in the services and retail sectors and increased readiness to invest and expand.

According to the latest Overseas Investors Chamber of Commerce and Industry (OICCI) Business Confidence Index (BCI) Wave 28, overall confidence rose 11% points to +22%.

The survey, covering companies that account for nearly 80% of the country’s GDP, also revealed a growing shift toward technology, with 43% of OICCI members already adopting generative AI and 81% expecting AI to manage key business operations soon.

The services sector recorded its highest score since 2017 with a 24% increase, followed by retail at 15%, while manufacturing saw a modest 1% rise.

Confidence improved across metro cities (14% to 23%) and non-metro areas (-3% to 19%), indicating broad-based recovery. OICCI members reported a jump in confidence from +17% to +27%, fueled by positive investment and expansion expectations.

Forward-looking indicators also show strong momentum. The New Orders (Expansion) Index rose to 41% from 26%, led by services and retail, while hiring plans strengthened with the New Jobs Index increasing to 16%. The New Investment Index also turned positive, rising from -4% to +12%.

OICCI President Yousaf Hussain described the findings as “a constructive shift in sentiment,” while Secretary General M. Abdul Aleem highlighted the need for targeted support in manufacturing to sustain growth.

Persistent challenges like taxation, inflation, currency devaluation, and inconsistent policies remain key concerns for businesses.

OICCI represents more than 200 leading multinational companies operating in Pakistan across over 13 key sectors of the economy.

Its members, originating from more than 30 countries, contribute more than one-third of the nation’s total tax revenues and play a central role in technology transfer, skills development, and large-scale employment.

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