Pakistan’s business community is more optimistic about the country’s economic direction than it has been in the last four years, according to a new Gallup Pakistan survey.
The findings reveal a sharp rise in confidence, driven by improved political stability and economic reforms.
Gallup Survey highlights growing optimism
The survey found that 46% of businesses now trust the current government’s economic policies, up from just 24% a year ago. Additionally, 61% of respondents rated their business operations as good or very good, indicating steady recovery despite challenges like inflation, high energy costs, and load shedding. They also noted they were optimistic about the future - a figure that has improved by only 1% compared to the previous survey.
Gallup’s country direction score improved to -2%, marking the highest level since the fourth quarter of 2021. The report highlights significant gains in Pakistan’s services and trade sectors, though the manufacturing industry’s recovery remains slow.
Key concerns for businesses
While businesses are not worried about the situation getting worse, the pace of improvement is slow. The survey found:
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28% of respondents cited inflation as the biggest challenge.
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18% pointed to high utility bills.
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11% named taxes as a top concern.
On a positive note, 47% of participants said load shedding has reduced compared to previous years, and complaints about bribery have dropped — only 15% admitted to paying bribes, down from 34% in earlier surveys.
Govt reaction
Prime Minister Shehbaz Sharif welcomed the report, calling it “a very promising sign” for Pakistan’s economy. He praised Finance Minister Muhammad Aurangzeb and his team for their reform efforts, which he said have “brought transparency to the system and created convenience for the business community.”
The PM added that the benefits of macroeconomic reforms are beginning to reach ordinary citizens and vowed to continue improving institutional performance to sustain growth.
