Business Confidence Under Strain, Yet Stronger Than Last Year, Gallup Pakistan Reports

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Islamabad: Gallup Pakistan has released its Business Confidence Index for the fourth quarter of 2025, revealing a decline in business confidence since the second quarter of the year. Despite the downturn, the confidence levels remain higher than the same period last year, according to the survey involving 571 businesses across the country.

The Business Confidence Index assesses current business performance, future expectations, and perceptions about the country’s direction. The recent survey indicates a moderate decline in all three components compared to the second quarter of 2025.

Specifically, the opinion on current business conditions fell from +20% to +8%, with fewer businesses describing their situation as good or very good. Future business expectations also saw a decrease, dropping from +22% to +12%. Views on the country’s direction worsened from -2% to -8%.

Despite these declines, the figures remain better than those recorded in the fourth quarter of 2024 and most of 2022-2023, suggesting an overall improvement in medium-term business sentiment.

Inflation remains a key concern, with 33% of businesses urging the government to prioritize price stability. A recent uptick in inflation has been noted in food and energy markets, affecting business confidence.

Additionally, 42% of businesses experienced power outages on the day of the survey, a figure consistent with last year. Despite significant investments in electricity infrastructure, ensuring a consistent power supply continues to challenge Pakistan’s economy.

On economic management, 46% of businesses rate the current PML-N government’s performance as better than the previous PTI administration. This rating has remained stable since the second quarter and is five points higher than a year ago.

Bilal Gilani, Executive Director of Gallup Pakistan, commented that while business confidence has slightly declined, businesses emphasize the need for economic growth alongside stabilization. “Stability helped, but growth now has to take the lead,” Gilani stated, highlighting that the PML-N government still holds the business community’s trust to deliver relief and reforms.