Business confidence improved significantly during the second quarter of the year, although concerns over the federal budget, inflation and rising operating costs continue to weigh on the country’s business community, according to the latest Business Confidence Index released by Gallup Pakistan.
According to the survey, 56 percent of businesses expressed optimism that economic conditions would improve over the next 12 months.
Current business confidence also improved markedly, rising from negative 19 percent to negative 10 percent during the quarter.
The survey found that confidence in future business prospects turned positive for the first time in three quarters, indicating growing optimism among business owners despite ongoing economic challenges.
However, inflation remains the most pressing concern, with 34 percent of businesses identifying it as their biggest challenge.
In addition, 72 percent of respondents complained about electricity load-shedding, highlighting persistent energy-related issues affecting commercial activity.
The survey also showed continued reservations about the federal budget for 2026–27. Around 39 per cent of businesses viewed the budget negatively, while 49 percent believed it would increase the cost of doing business.
An equal proportion said their confidence in future business prospects had declined following the announcement of the budget.
Commenting on the findings, Gallup Pakistan Executive Director Bilal Gilani said business confidence had improved, but trust in fiscal policy remained limited.
He added that sustainable economic recovery would depend on further progress in controlling inflation, improving energy availability and reducing the cost of doing business.
