Business confidence in Pakistan has soared to 83% in 2024, marking a sharp rise from 49% last year, driven by expectations of economic improvement, according to PwC’s 28th Annual Global CEO Survey Pakistan.
The survey, which gathered insights from 70 CEOs across various industries, shows a significant shift in sentiment as optimism about global economic growth also climbed to 70%, up from 39% in 2023.
While 70% of CEOs expect global economic improvement, an even higher 83% believe Pakistan’s economic outlook will improve — a notable reversal from last year when 28% predicted economic decline. Now, only 9% hold a pessimistic outlook.
Confidence in business performance has also strengthened, with 92% of CEOs optimistic about revenue growth in the next 12 months and 99% confident over the next three years, according to the Mettis Global news.
Despite the optimism, business leaders highlighted ongoing challenges such as macroeconomic volatility (46%), inflation (39%), and geopolitical risks (31%).
The survey reveals a growing trend towards business transformation, with 54% of companies diversifying into new sectors like consumer, retail, and real estate. Additionally, 46% of CEOs plan acquisitions within the next three years, signaling a shift toward inorganic expansion.
A key finding is the urgency for business model reinvention, with 44% of CEOs believing their companies will not survive beyond the next decade without significant transformation. As a result, 85% of companies are reallocating financial resources, while 87% are reshaping human resources to align with evolving market needs.
Artificial Intelligence (AI) adoption is accelerating, with 75% of CEOs expecting AI to be integrated into business operations. However, while 51% have experienced increased efficiency, the technology’s impact on profitability and revenue remains below expectations.
Climate action is also gaining momentum, with 80% of businesses initiating climate-friendly investments. Yet, challenges like regulatory complexity and lack of stakeholder demand continue to hinder progress. Encouragingly, 58% of CEOs have linked executive compensation to sustainability goals, reflecting a stronger commitment to environmental responsibility.
The findings were echoed by the Pakistan Business Council (PBC) and the Overseas Investors Chamber of Commerce and Industry (OICCI), with both bodies urging businesses to shift from domestic reliance to export-oriented strategies amid improving investor confidence.
