A survey by PwC has revealed that Business optimism in Pakistan has seen a significant rise and has reached 83 percent against 49 percent last year.
The 28th Annual Global CEO Survey for Pakistan by the PwC stated that the surge is largely fuelled by growing expectations of economic improvement in the country.
The survey, which gathered insights from 70 CEOs across various industries, also reveals a broader shift in confidence. Globally, confidence in economic growth has risen to 70 per cent, compared to 39 per cent last year.
While 70 per cent of CEOs worldwide expect an improvement in the global economy, an even higher percentage—83 per cent—are optimistic about Pakistan’s economic future.
This marks a steep decline in pessimism, with only 9 per cent now anticipating an economic downturn, down from 28 per cent last year.
The survey also indicates a strong sense of optimism regarding revenue growth. A significant 92 per cent of CEOs are confident about their revenue prospects for the next 12 months, while nearly all (99 per cent) are optimistic for the next three years.
However, challenges remain. Macroeconomic volatility is a concern for 46 per cent of respondents, while 39 per cent are worried about inflation and 31 per cent highlight geopolitical risks as ongoing threats.
In response to these challenges, businesses are expanding into new sectors, with consumer goods, retail, and real estate emerging as the top industries for diversification. Additionally, 46 per cent of companies plan to pursue acquisitions in the coming three years, indicating a trend towards inorganic growth strategies.
The need for business reinvention has also become more urgent. Nearly 44 per cent of CEOs believe their companies won’t remain economically viable beyond the next decade unless they significantly overhaul their business models.
To meet these challenges, 85 per cent of companies are reallocating financial resources, while 87 per cent are adjusting their human resources to better align with market demands.
Another key focus is the integration of Artificial Intelligence (AI). A large majority—75 per cent—of CEOs expect AI to be integrated into their business processes in the near future.
While 51 per cent of respondents report improved efficiency due to AI, its impact on profitability and revenue is yet to fully materialize.
