By Digital Spartans 
Business sentiment in Pakistan has recorded a substantial improvement, with the national confidence index rising to +22 percent in the latest survey cycle. The 11-point gain, reported in the Business Confidence Index (BCI) Wave 28 released by the Overseas Investors Chamber of Commerce and Industry (OICCI), indicates a renewed sense of optimism among firms operating in the country.
The upward shift suggests companies are becoming increasingly open to expansion, hiring, and fresh investment, despite ongoing macroeconomic and regulatory challenges that continue to influence decision-making.
A key highlight of the report is the strong performance of the services sector, which logged its highest confidence score in eight years. The sector registered a 24-point jump in sentiment, signaling a notable rebound following years of constrained growth and profitability pressures.
Retail businesses also saw a sizeable recovery, with a 15-point uplift in confidence, reflecting healthier demand signals and a more stable commercial environment. Manufacturing, however, witnessed a marginal increase of just one point, underscoring a slower recovery trajectory for the industrial segment amid cost pressures and import-related disruptions.
Geographically, sentiment improved in both major urban hubs and smaller markets. Confidence in metro cities rose from +14 percent to +23 percent, while non-metro areas reversed previous negative sentiment, jumping from –3 percent to +19 percent. The change points toward a broader recovery that extends beyond traditional commercial centers.
An emerging trend shaping business priorities is the rapid deployment of generative artificial intelligence. According to the survey, 43 percent of member companies already use generative AI in operations, while more than 80 percent anticipate the technology will soon replace significant business functions. For Pakistan, where digital modernization has historically lagged, this marks a potentially transformative shift in competitive strategy.
Forward-looking indicators strengthened across the board. The New Orders Index climbed to 41 percent, up from 26 percent, led by services and retail. Hiring sentiment also improved modestly, with the New Jobs Index rising from 13 percent to 16 percent, supported by a 21-point swing in services-sector hiring expectations.
Investment dynamics appear to have reset as well. The New Investment Index, which remained in negative territory in the previous cycle, moved from –4 percent to +12 percent, suggesting that firms are once again planning capital expenditure to meet projected demand.
Despite the encouraging results, respondents highlighted enduring risks. High taxation, inflationary pressures, currency instability, corruption, and unpredictable policy frameworks remain major obstacles. These challenges, businesses warn, could undermine the recovery if not addressed through structural reforms.
The latest BCI results indicate cautious optimism rather than unreserved confidence, with companies exhibiting readiness to rebuild — but with clear expectations of improved policy stability.