Significant decline in business confidence in Pakistan, 70 to 80 percent of companies are postponing new investments
Published 1 hour ago | By Pak24tv
According to the latest Business Confidence Index survey by the Overseas Investors Chamber of Commerce and Industry (OICCI), business confidence in Pakistan is under severe pressure.
In the second quarter of 2026, business confidence has declined by 9 percentage points to a positive 13 percent, from a positive 22 percent in the previous quarter.
According to the survey, 70 to 80 percent of businesses are postponing or reviewing new investment decisions. The major reasons for the decline in business confidence include ongoing tensions in the Middle East, rising inflation, rising fuel prices, supply chain disruptions and economic uncertainty.
On a sectoral basis, the services sector saw the highest decline, where confidence fell by 20 points to a positive 14 percent. The manufacturing sector also recorded a decline of 7 points.
However, the retail sector improved by three points to a positive 20 percent.
The New Investment Index also fell 10 points to just positive 2%.
OICCI Secretary General M Abdul Aleem said that businesses are operating in a complex and uncertain environment. He stressed on policy continuity, cost reduction and mitigating geopolitical risks.
The companies included in the survey represent about 80% of Pakistan’s GDP.
