Karachi, May 22, 2025 — In a major sign of an economic turning point, business confidence in Pakistan has rebounded dramatically, with optimism soaring across industries, according to the latest Business Confidence Index (BCI) Survey released by the Overseas Investors Chamber of Commerce and Industry (OICCI).
The BCI Wave 27, conducted in March and April 2025, reveals a powerful resurgence in sentiment, as overall business confidence surged by 16 percentage points—from a negative 5 percent in the previous wave to a robust positive 11 percent. The announcement came just hours after senior leadership of OICCI met with Federal Finance Minister Senator Muhammad Aurangzeb, signaling strong government-private sector synergy.
“This surge in business confidence is not just a statistic—it’s a national statement,” declared Minister Aurangzeb. “The revival reflects a powerful vote of confidence in Pakistan’s economic policies, and we remain committed to bolstering investor trust, business sustainability, and macroeconomic strength.”
The standout performer in this wave was the Manufacturing sector, where business confidence rocketed from negative 3 percent to positive 15 percent, illustrating a dramatic turnaround. The Retail and Wholesale sector also flipped from a steep negative 18 percent to a modest but vital positive 2 percent. Meanwhile, the Services sector gained steady ground, rising from 2 percent to 10 percent.
OICCI President Yousaf Hussain emphasized the resilience and adaptability of Pakistan’s corporate landscape. “The latest wave underscores a solid recovery in overall business confidence. The private sector is clearly regaining momentum, and our members are increasingly optimistic about future growth opportunities,” he noted. However, he stressed the need for policy consistency, transparency, and greater stakeholder engagement to sustain this upward trend.
A striking 45 percent of respondents expressed positive expectations for the coming six months, buoyed by factors such as improved security, enhanced policy direction, and a more favorable investment climate. Notably, foreign investors participating in the survey reported a rise in their business confidence from 6 percent to a remarkable 17 percent.
However, the past is not forgotten. While positive outlooks surged, 53 percent still cited a negative view of business conditions over the past six months—though this is a marked improvement from 66 percent in the previous BCI wave. The primary concerns cited included inflation, taxation, energy issues, rupee depreciation, and political instability—factors that continue to challenge business confidence.
M. Abdul Aleem, OICCI’s Chief Executive and Secretary General, highlighted that employment outlook, expansion plans, and expected capital investments all improved. However, despite a 19 percent improvement in investment sentiment, new investment plans overall remain in negative territory—a critical area that requires immediate policy attention to unlock Pakistan’s full economic potential.
The BCI, which is conducted twice annually and reflects the views of businesses representing nearly 80 percent of Pakistan’s GDP, provides a crucial gauge of the country’s economic pulse. Surveyed across major cities like Karachi, Lahore, Islamabad, and Peshawar, the findings portray a business environment on the rise—cautious yet increasingly filled with confidence.