OICCI survey finds major boost in business confidence

ISLAMABAD: The Overseas Investors Chamber of Commerce and Industry (OICCI) has released the results of its latest Business Confidence Index (BCI) survey (Wave 27), showing a sharp rise in business sentiment across Pakistan.

The survey conducted across Pakistan in March and April 2025 reflects significant improvement in overall business confidence, which improved substantially by 16 percentage points from negative  five percent to positive 11 percent, compared to the previous wave conducted in October November 2024.

According to the survey, the manufacturing sector led the recovery, moving from -3% to +15%. Retail and wholesale confidence also flipped from -18% to +2%, while the services sector rose from +2% to +10%.

Federal Finance Minister Muhammad Aurangzeb, after meeting an OICCI delegation, said that the rising business confidence reflects that “the economy is heading in the right direction.” He stressed the government’s commitment to creating an investor-friendly environment.

PSX jumps over 700 points, PKR appreciates

OICCI President Yusuf Hussain said this was a “strong sign” that businesses are ready to seize growth opportunities. But he cautioned that policy consistency and close engagement with key stakeholders are essential to sustain this momentum.

The report says 45 per cent of participants expect better conditions in the next six months, citing improved security, better policies, and economic recovery. However, 53 per cent still rated recent business conditions as negative—though that’s a significant improvement from 66 per cent in the last survey.

Confidence among foreign investors (OICCI members) jumped from +6% to +17%. Reasons include improved industrial activity, global recovery, and hopes of rising investment in the next six months.

OICCI CEO M. Abdul Aleem called the results “better than expected,” especially in manufacturing and retail sectors. He pointed out that while overall confidence has improved, new investment projects only showed a 19% rise and still remain negative, which is a concern.

The survey also flagged inflation, tax policies, rupee depreciation, and policy inconsistency as major concerns going forward.

OICCI conducts the BCI survey twice a year. It reflects the views of businesses representing around 80% of Pakistan’s GDP, across cities like Karachi, Lahore, Islamabad/Rawalpindi, Peshawar, and Faisalabad.