Business optimism in Pakistan soars to 83%, up from 49%

March 05, 2025 (MLN): Business optimism in Pakistan has surged to 83%, up from 49% last year, driven by expectations of economic improvement, according to PwC’s 28th Annual Global CEO Survey Pakistan.

This increase reflects a significant shift in sentiment, as confidence in global economic growth has also risen to 70% from 39%.

The survey, which gathered insights from 70 CEOs across various industries, highlights a growing sense of confidence in economic growth, both globally and domestically.

While 70% of CEOs expect an improvement in the global economy, an even higher percentage 83% believe Pakistan's economic outlook will improve.

This marks a sharp decline in pessimism, as only 9% now anticipate economic decline, compared to 28% last year.

The survey also indicates strong confidence in revenue growth, with 92% of CEOs optimistic about the next 12 months and an overwhelming 99% confident about the next three years.

However, despite this optimism, concerns about macroeconomic volatility (46%), inflation (39%), and geopolitical risks (31%) persist.

Additionally, 54% of businesses are expanding into new sectors, with consumer, retail, and real estate emerging as top choices.

Moreover, 46% of companies are planning acquisitions in the next three years, indicating a shift towards inorganic expansion.

A key finding of the report is the urgency for business reinvention.

Around 44% of CEOs believe their companies will not be economically viable beyond the next 10 years unless they significantly alter their business models.

This has led to increased resource reallocation, with 85% of companies shifting financial resources and 87% adjusting human resources to align with evolving market needs.

Artificial Intelligence (AI) adoption is becoming a priority, with 75% of CEOs expecting AI to be integrated into their business processes.

However, while 51% of CEOs report increased efficiency in their own work due to AI, the technology’s impact on profitability and revenue is yet to meet expectations.

Climate action is also gaining traction, with 80% of companies initiating climate-friendly investments.

However, barriers such as lack of stakeholder demand and regulatory complexity remain.

Encouragingly, 58% of CEOs have linked their incentive compensation to sustainability metrics, reflecting a commitment to environmental responsibility.

The Pakistan Business Council (PBC) and the Overseas Investors Chamber of Commerce and Industry (OICCI) echoed the findings of the report.

PBC emphasized the need for businesses to shift from domestic market reliance to export-oriented strategies, while OICCI highlighted improvements in economic stability and investor confidence.

With economic optimism at a record high, Pakistani CEOs are looking towards strategic reinvention, AI integration, and sustainability measures to ensure long-term business viability in an evolving economic landscape.

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