Business Confidence in Pakistan Hits 4-Year High Amid Economic Uncertainty

Islamabad: Business confidence in Pakistan has reached its highest level in four years, with local enterprises expressing increased trust in the government’s economic policies compared to previous administrations.
According to Gallup Pakistan’s latest Business Confidence Survey, despite ongoing challenges such as inflation, rising energy costs, and load shedding impacting business operations, there has been a noticeable improvement in overall business confidence.
The survey reveals that the country’s overall direction has improved significantly, with the country’s direction score moving from a dramatic negative value to negative 2% in the last quarter of 2024. Although still negative, this is the highest level of confidence since the fourth quarter of 2021.
The increase in business confidence indicates a positive shift in the perception of Pakistan’s political and economic uncertainty, with a significant rise in the number of businesses holding a positive outlook on the government’s economic performance.
The survey also showed that 46% of businesses expressed confidence in the current government’s economic policies, up from 24% a year ago. Additionally, 61% of respondents described their current business operations as “good” or “very good,” marking a 6% improvement from the previous survey.
While sectors such as services and trade have shown significant improvement, the recovery in the manufacturing sector remains slow. The survey revealed that 61% of participants were optimistic about the future, though this confidence only showed a slight increase of one percentage point from the previous survey, indicating that although businesses do not foresee worsening conditions, the pace of improvement is slow.
Key challenges facing businesses include inflation, rising utility bills, and taxes, with 28% of respondents highlighting inflation, 18% citing high utility costs, and 11% pointing to taxes as the most significant issues. Additionally, 47% of participants confirmed load shedding, which, though reduced from previous years, still presents challenges to the business sector.
A notable positive aspect of the survey was the reduction in bribery complaints. Only 15% of participants reported paying bribes in the last six months, a significant decrease from 34% in the last quarter of 2024.
Overall, the survey shows an improvement in business sentiment regarding the national direction and current business conditions, though concerns over inflation, energy costs, and governance challenges continue to impact the business environment.
Gallup Pakistan’s Executive Director, Bilal Ijaz Gilani, commented on the survey results, stating that the findings reflect a modest improvement in business confidence and stability among business stakeholders. He emphasized that sustaining this positive trend depends on macroeconomic reforms, policy consistency, and improvements in institutional performance.
The Gallup Business Confidence Index survey was conducted between July 23 and 27, 2025, and included 524 businesses across the manufacturing, services, and trade sectors in Pakistan. This survey serves as an important indicator for policymakers to gauge the views of the business community.