Gallup Sees Sharp Rise in Economic Optimism

Business confidence in Pakistan has reached its highest level in nearly four years, according to Gallup Pakistan’s latest quarterly survey.

The poll suggests growing optimism about the country’s direction and the government’s handling of the economy, despite persistent inflation, high energy costs, and electricity shortages.

The Q2 2025 survey, conducted between 23 and 27 July among 524 firms in manufacturing, services, and trade, showed the “Direction of the Country Score” at -2 percent. While still slightly negative, it represents a sharp recovery from late 2024 and the best result since late 2021. Gallup said the findings point to a moderate easing of political and economic uncertainty.

Almost half of respondents — 46 percent — said Prime Minister Shehbaz Sharif’s government was managing the economy better than the previous administration of Imran Khan, up from 24 percent a year earlier. The improvement was seen as a sign of growing trust in the government’s policies.

Gallup Pakistan’s executive director, Bilal Ijaz Gilani, noted that the change reflected a “cautiously improving mood” among businesses, though sustaining this would depend on policy stability, reforms, and better institutional support, especially for informal enterprises.

Operational performance also improved, with 61 percent of businesses rating their current situation as good or very good — a six-point rise from the previous quarter. Optimism for the months ahead was more muted, with the future confidence score up just one point.

Rising prices, high utility bills, and taxes remain the main concerns. Inflation, although eased to 0.3 percent in April from a peak of 38 percent in May 2023, was still the top issue. Energy shortages affected 47 percent of firms, though this was lower than in previous years.

The survey also recorded a notable drop in reported bribery, falling to 15 percent from 34 percent in late 2024.