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KARACHI, June 2, 2026: The Overseas Investors Chamber of Commerce and Industry (OICCI) has released the results of its Business Confidence Index (BCI) Survey Wave 29, conducted across Pakistan during the second quarter of 2026. The survey shows a significant decline in business confidence, mainly due to inflation, rising fuel costs, and the ongoing conflict in the Middle East.
Overall business confidence fell by 9 percentage points to a positive 13 percent, down from 22 percent in the previous survey. Consequently, businesses have become more cautious about investment and expansion.
The Services sector recorded the steepest decline, dropping 20 points to 14 percent. Meanwhile, the Manufacturing sector fell by 7 points. In contrast, the Retail sector improved by 3 points and reached a positive 20 percent.
More importantly, the New Investment Index dropped by 10 points to just 2 percent. This sharp decline indicates that companies have largely paused new investment plans.
Furthermore, around 70 to 80 percent of businesses across all sectors are either delaying or revising investment decisions. At the same time, many companies are diversifying supply chains to reduce risks linked to disrupted trade routes. As a result, businesses are focusing more on resilience and risk management.
The survey also showed a 31-point decline in the global business situation indicator. Moreover, respondents expect disruptions to continue for more than six months.
Commenting on the findings, OICCI Secretary General M. Abdul Aleem said businesses in Pakistan are operating in an increasingly challenging environment. He noted that the Middle East conflict has affected investment decisions, supply chains, and overall business planning. However, he added that Pakistan’s market fundamentals remain strong. Therefore, policymakers must ensure stability, reduce business costs, and protect the economy from prolonged geopolitical uncertainty.
Looking ahead, 34 percent of respondents expect business conditions to worsen over the next six months. This figure has risen significantly from 22 percent in the previous survey. Respondents identified political instability, inflation, and fuel prices as their biggest concerns.
When asked about long-term business challenges, 84 percent cited inflation as the top threat. Meanwhile, 79 percent pointed to high taxation. In addition, 61 percent expressed concerns about currency stability and inconsistent government policies.
Despite the broader decline, business confidence among OICCI member companies remained relatively strong. In fact, confidence among leading foreign investors improved slightly to a positive 28 percent.
Regionally, confidence in major metropolitan cities fell by 12 points to 11 percent. However, non-metro cities, including Peshawar, Quetta, Rawalpindi, Multan, Sialkot, and Sukkur, recorded a 3-point increase to 22 percent.
On a positive note, the survey highlighted growing interest in Generative AI. OICCI member companies showed greater readiness to integrate AI into technology platforms, business operations, and workforce development. Consequently, many foreign investors continue to prepare for long-term transformation despite current challenges.
OICCI conducts the BCI Survey twice a year. The survey covers businesses representing nearly 80 percent of Pakistan’s GDP.
