The Overseas Investors Chamber of Commerce and Industry (OICCI) has released the Business Confidence Index (BCI) Survey Wave 29, indicating a significant decline in business sentiment. The overall BCI dropped from 22% to 13% due to pressures from inflation, rising fuel costs, and the ongoing Middle East conflict.

The Services sector experienced the sharpest decline, down 20 points to 14%, while Manufacturing fell by 7 points. Conversely, the Retail sector improved by 3 points to 20%. Investment intentions weakened, with the New Investment Index collapsing to just 2%, as 70–80% of businesses are delaying or revising investment decisions.

The survey revealed that 34% of respondents expect a negative outlook in the next six months, citing political instability and inflation as primary concerns. Rising inflation (84%) and high taxation (79%) were identified as key threats to growth. Despite these challenges, business confidence among OICCI member companies improved to 28%.

Notably, there is growing interest in adopting generative AI, with leading foreign investors seeking to position themselves for long-term transformation. The BCI Survey, conducted biannually, includes participants representing around 80% of Pakistan’s GDP.