Business confidence improves amid cautious optimism

Business confidence in Pakistan has improved to negative 5 per cent from 14pc, according to results of the 26th Wave of the Business Confidence Index (BCI) survey conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI). The survey reflects improvement in overall business confidence compared to the previous wave conducted in March–April 2024. Overseas investors were optimistic for the next six months, with 43pc respondents expressing positive expectations, up from 34pc in the previous Wave 25. Key contributors to this positive outlook include growth in the global market, better government policies, declining inflation, improved law-and-order conditions, and economic growth. However, OICCI Secretary General M. Abdul Aleem said the BCI Wave 26 feedback reflects cautious optimism among businesses, with significant gains in the services and manufacturing sectors. Despite notable improvement on the overall BCI, Aleem added, “the new investment plans, overall, were negative 23pc versus negative 12pc in the previous BCI 25, which is an area of concern and needs to be addressed to boost economic growth and employment.