A recent Gallup Pakistan survey reveals that the country’s business community is showing significantly more trust in the government’s economic direction than in recent years. According to the findings, 46% of business owners now express confidence in the government’s economic policies, a notable increase from 24% in the previous year. This surge in optimism is largely attributed to improved political stability and the implementation of key economic reforms.
The report indicates that 61% of respondents rated their current business performance as good or very good, suggesting that despite persistent issues such as inflation, energy shortages, and high utility costs, many businesses see positive momentum in the economy. Though only a marginal improvement of 1% was recorded in future expectations compared to the previous survey, the mood remains cautiously hopeful.
Gallup’s “country direction score” has also seen a positive shift, rising to -2%, the best figure recorded since Q4 of 2021. Notably, the services and trade sectors have experienced significant growth, while the manufacturing industry continues to recover at a slower pace.
Inflation, Utility Bills, and Taxation Remain Core Business Concerns
Despite rising optimism, businesses still face considerable hurdles. The Gallup survey outlined key concerns for the business community:
- 28% identified inflation as their biggest challenge.
- 18% cited high utility bills as a major burden.
- 11% expressed concerns over taxation.
However, there were encouraging signs in other areas. 47% of respondents reported a decrease in load shedding compared to past years, and complaints of bribery have dropped significantly, with only 15% admitting to paying bribes, down from 34% in previous surveys. This decline suggests a notable improvement in public service integrity and transparency.
Prime Minister Welcomes Results, Commits to Continued Reforms
Reacting to the survey, Prime Minister Shehbaz Sharif hailed the findings as a “very promising sign” for Pakistan’s economic recovery. He commended Finance Minister Muhammad Aurangzeb and his economic team for implementing reforms that have increased transparency and reduced bureaucratic hurdles for businesses.
“The results of these reforms are beginning to trickle down to the people,” the prime minister stated. He emphasized the government’s commitment to strengthening institutions, supporting the private sector, and ensuring that the macroeconomic improvements are felt more broadly across society.
