Pakistan Business Confidence Hits Four Year High
Business Optimism on the Rise as Reforms Boost Confidence
ISLAMABAD – Pakistan’s business community is showing renewed optimism about the country’s economic direction, with confidence levels hitting their highest point in years, according to Gallup Pakistan’s Q2 2025 survey.
The survey, conducted between July 23 and 27, found that 61% of businesses rated their current operations as “good” or “very good” — a six-point jump from the previous quarter. The “Direction of the Country Score” also improved to -2%, the best reading since late 2021.
Prime Minister Shehbaz Sharif credited the improvement to key government reforms, including the digitization of the Federal Board of Revenue (FBR) to streamline tax processes and curb corruption, energy sector upgrades that reduced load shedding, and increased institutional transparency that has strengthened investor trust.
The PM stressed that these macroeconomic gains are beginning to benefit ordinary citizens, adding that his government is committed to improving institutional performance. He also praised Finance Minister Muhammad Aurangzeb and his team for their role in stabilising the economy.
Gallup’s findings also revealed a sharp drop in bribery reports — from 34% in Q4 2024 to just 15% in Q2 2025 — a decline attributed to ongoing governance reforms.
Despite persistent challenges, including inflation, high energy costs, and heavy taxation, 61% of businesses remain optimistic about the future. Analysts say the trend points to a gradual recovery in business sentiment, driven by closer government engagement with the private sector and investor-friendly policies.
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