Private sector sentiment in Pakistan has strengthened to levels not seen since late 2021, Gallup Pakistan’s Q2 2025 business confidence survey shows. The findings indicate improving views on the country’s overall direction and the government’s economic management.
Between 23 and 27 July, Gallup gathered responses from 524 companies across trade, services, and manufacturing. The “Direction of the Country Score” rose sharply to -2 percent, up from far lower figures in 2024. While the reading remains in negative territory, it marks a significant recovery.
Support for Prime Minister Shehbaz Sharif’s handling of the economy has also grown. Forty-six percent of respondents said his government was performing better than that of former premier Imran Khan — a marked increase from 24 percent last year.
Gallup’s executive director, Bilal Ijaz Gilani, said the results suggested a gradual return of stability in business sentiment. He added that sustaining progress would require consistent reforms and stronger institutional engagement, particularly with smaller and informal enterprises.
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Current business conditions improved, with 61 percent of firms reporting positive performance — six points higher than in the previous survey. However, expectations for the near future rose only slightly, hinting at cautious optimism.
Despite these gains, longstanding problems persist. Inflation, now at 0.3 percent in April from a high of 38 percent in May 2023, still tops the list of concerns, followed by high utility costs and taxes. Nearly half of businesses reported experiencing power cuts on the survey day, although the rate has eased compared with prior years.
One of the most striking shifts was a drop in reported bribery, with only 15 percent admitting to such payments in the past six months — down from 34 percent in late 2024.