Business Confidence in Pakistan Weakens Sharply, 80% of Firms Postpone Investment Decisions

Islamabad,— Business confidence in Pakistan has declined significantly, with 80 percent of companies postponing their investment decisions amid economic uncertainty, according to a new survey by the Overseas Investors Chamber of Commerce and Industry (OICCI).
The OICCI Business Confidence Index (BCI) fell by 9 percentage points to +13% in the latest survey. Although the index remains in positive territory, the sharp decline signals growing concerns among both local and foreign investors regarding the country’s economic outlook.
Key findings from the survey include:
80% of respondent companies have deferred their investment plans.
Businesses cited high inflation, policy uncertainty, rising energy costs, and a difficult regulatory environment as major obstacles.
Foreign investors expressed particular concern over the slow pace of economic reforms and inconsistent government policies.
The Overseas Investors Chamber of Commerce and Industry, which represents major multinational and foreign companies operating in Pakistan, conducts this survey regularly to gauge the investment climate. The latest results reflect a noticeable drop in optimism compared to the previous period.
Economic analysts say this weakening business sentiment could further delay Pakistan’s economic recovery and impact job creation and industrial growth. Despite some positive indicators such as IMF-supported programs and recent foreign investment deals, ground-level confidence remains fragile.
“The significant drop in business confidence and postponement of investment decisions is a worrying sign,” said a senior OICCI official. “For sustainable economic growth, the government must focus on policy consistency, ease of doing business, and addressing core issues like energy availability and taxation.”
This development comes at a critical time as Pakistan seeks to attract fresh foreign direct investment (FDI) and stabilize its economy under ongoing financial challenges.