70–80pc Businesses Delaying or Revising Investment Decisions in Pakistan, Reveals Latest OICCI BCI Survey

KARACHI: Approximately 70%-80% of companies conducting operations throughout the country have actually decided to hold off on or even modify their investment plans. The just published Business Confidence Index (BCI) Survey Wave 29 conducted by Overseas Investors Chamber of Commerce and Industry (OICCI) reveals an unprecedented drop in the willingness of businesses to take risks. With such factors as local financial problems and increasing geopolitical tensions influencing each other, the confidence index has decreased by 9 percentage points and stabilized at a mere positive 13 percent.

The sudden erosion of sentiments points to an underlying sense of unease among corporate entities concerning the stability of the macroeconomic environment. The total suspension of investment plans in Pakistan indicates that businesses have opted not to expand, but rather save money to strengthen their operations.

Structural Threats Stymie Development amid Rising Inflation and Taxes

The actual statistics during the second quarter of 2026 clearly illustrate how difficult things have become for the country’s economy. For example, when senior company officials were asked to state the biggest threats to economic existence, the biggest percentage, namely, 84%, cited inflation as the reason. Additionally, 79% of company heads named a heavy tax system as an obstacle to growth, while 61% were still worried about the stability of the national currency.

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Differences between Sectors Reveal Extreme Suffering in Core Service Industries

Upon further exploration of the sectoral breakdown, an economic map emerges showing severe inequality within the economy, with large corporations reassessing their decisions regarding their investments in Pakistan. The core industry of Services was hit hardest with a significant decline in its index by 20 points to 14 percent. Likewise, the Manufacturing industry fell by 7 points due to lower manufacturing production and higher input costs. Meanwhile, the sole increase was seen in the Retail industry, up to a mere 3 points to 20 percent.

In terms of geography, the business sentiment for large cities decreased sharply, dropping 12 points to reach 11%. But what makes the above finding even more interesting is the fact that there are certain cities that have succeeded in defying the trend by registering a three percent rise to reach 22%. However, on the whole, there remains a great deal of caution regarding the economic prospects in the next six months, especially when one considers that 34% of the respondents have a very pessimistic view about their economic future.

Technology Adaptation Brings Comfort During Changing Business Approaches

In spite of all the gloomy feelings around corporate activities, multinational companies as well as large foreign businesses show signs of resilience. A business confidence index within OICCI firms, which are the biggest foreign investors in the country, was slightly improved to positive 28 percent. Instead of concentrating on expanding physically their property or production lines, top-performing companies are shifting their focus towards technological adaptation rather than investing in Pakistan.

The survey recorded an increase in companies’ interest in large-scale generative AI implementation. Visionary foreign businesses have started leveraging this economic crisis to revamp internal systems of operation, upgrade technologies in use by enterprises, and reskill employees. Although immediate investment decisions about physical infrastructure for Pakistan are put on hold until further notice, the emphasis now is on the adoption of technology to make operations cost-effective in times of political unrest.