Business Confidence in Pakistan Remains Low Despite Improvement Over Last Year: Survey

Business confidence in Pakistan has fallen sharply by up to 12 percent in the fourth quarter of 2025, according to Gallup Pakistan’s latest Business Confidence Index, which surveyed 571 businesses across the country. The report shows a clear decline in views on current activity, future expectations, and the overall direction of the economy. Gallup Pakistan found that the share of businesses rating current business conditions as good dropped from plus 20 percent to plus 8 percent. This reflects a 12 percent fall within the quarter, although this level still stands above the readings recorded in the same period last year. Expectations for the next six months slid from plus 22 percent to plus 12 percent, a decline of 10 percent. Perceptions of the country’s direction deteriorated from minus 2 percent to minus 8 percent, marking a 6 percent increase in pessimism. Inflation remains the biggest concern for the business community, with 33 percent of firms calling on the government to prioritise price stability as food and energy costs have begun rising again. Energy shortages also persisted, as 42 percent of surveyed businesses reported a power outage on the day of the interview. On economic management, 46 percent of businesses said the current PML-N government is performing better than the previous administration, maintaining the same approval level recorded in the previous survey. Commenting on the results, Bilal Gilani, Executive Director of Gallup Pakistan, said confidence has “declined modestly” and warned that economic stabilization alone will not sustain sentiment. He said stronger economic growth is now needed to keep business expectations on a steady upward path.