Business confidence slips but still beats last year

November 17, 2025 (MLN): Pakistan’s business confidence weakened in the fourth quarter of 2025, with companies reporting softer current conditions and lower expectations for the months ahead, according to Gallup Pakistan’s latest Business Confidence Index.

The dip shows rising inflationary pressure and ongoing power supply issues, though overall sentiment remains stronger than in Q4 2024.

Gallup’s 16th survey wave, based on responses from 571 businesses nationwide, shows current business conditions dropping to +8% from +20% in Q2 2025. Expectations for future business activity also slipped, falling to +12% from +22%. Perceptions of the country’s direction declined to –8%, compared with –2% in Q2.

Inflation remains the most pressing concern for firms, with 33% urging the government to prioritize price stability following renewed price increases in food and energy markets.

Despite substantial investments in the power sector, 42% of surveyed businesses reported load-shedding on the day of the interview roughly the same as a year ago.

Political assessments also featured in the report. 46% of respondents rated the current PML-N government’s economic management as better than the previous PTI administration, unchanged from the previous quarter and slightly higher than a year earlier.

Gallup Pakistan noted that while sentiment has softened since mid-2025, confidence remains above levels seen through much of 2022–23, indicating a more stable medium-term outlook.

However, the group warned that stabilization alone is insufficient to sustain momentum without stronger economic growth.

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