The survey, released by Gallup Pakistan, revealed that business confidence in the country has declined significantly due to the ongoing energy crisis and rising regional tensions, with fears that conditions could worsen further in the coming months, it was reported on Thursday.
The Gallup Pakistan survey identified rising energy costs and geopolitical instability as the primary factors behind the decline.
It found that key indicators, including current business conditions, future expectations and overall economic direction, have all turned negative.
Only 41 percent of businesses described their current operations as good or very good, reflecting a sharp decline of 27% in overall positive sentiment.
Companies also appeared increasingly pessimistic about the future, with 57 percent expressing negative expectations, while just 43% hoped for improvement in the coming months.
Confidence in the country’s overall economic direction has also weakened, with the index falling to negative 32, compared with negative 8 in the previous quarter.
Inflation and energy shortages were cited as major challenges. Around 37% of businesses identified inflation as the most pressing issue, while 57 percent complained about load-shedding, marking a 15 percent increase compared with the previous quarter.
Rising production costs were also highlighted by 62 percent of respondents.
Concerns about governance were evident, with 46 percent of participants expressing a lack of confidence in government performance, while only 33 percent voiced trust.
Regional instability has further compounded the situation, with 81 percent of businesses reporting a negative impact from tensions in the Middle East.
Additionally, 58 percent pointed to rising energy costs and 73 percent to overall increases in operational expenses.
The survey indicated that 76 percent of businesses expect conditions to deteriorate over the next three months if uncertainty persists, warning that a combination of domestic economic pressures and regional instability could further strain the business environment.
