ISLAMABAD – According to Gallup Pakistan’s latest business confidence survey, private businesses in the country have shown the highest level of confidence in the nation’s direction in nearly four years, with many businesses indicating a positive shift in perceptions of the government’s economic management.
The survey, conducted between July 23 and 27, 2025, found a significant improvement in business sentiment, particularly regarding Prime Minister Shehbaz Sharif’s handling of the economy. 46% of businesses now rate the government’s economic management as better than its predecessor, up from just 24% a year ago.
Despite ongoing challenges like inflation, high utility costs, and electricity load-shedding, businesses have noted a moderate easing of political and economic uncertainty. The Gallup’s “Direction of the Country Score” has increased to 2%, marking the highest confidence level since Q4 2021.
The survey also revealed encouraging signs in business performance, with 61% of respondents reporting “good” or “very good” operations, a 6% increase from the previous wave. However, concerns over price hikes, high energy costs, and taxation remain central to business challenges. Energy insecurity also continues to affect operations, with 47% reporting load-shedding.
The survey further highlighted a significant decrease in bribery, with only 15% of respondents indicating payment of bribes in the last six months, down from 34% in Q4 2024.
While business optimism is growing, the survey indicates that the long-standing challenges, particularly inflation and energy reliability, continue to weigh on future business confidence.
