Pakistan business confidence dips in Q4 as inflation, power outages sap sentiment — Gallup

A vendor uses a mobile phone as he waits for customers at a market in Lahore on July 31, 2025. (AFP/File)
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Updated 17 November 2025
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Pakistan business confidence dips in Q4 as inflation, power outages sap sentiment — Gallup

  • Business confidence weakens across all indicators though sentiment remains stronger than Q4 2024
  • Inflation re-emerges as top concern and 42% of firms report load-shedding on survey day

KARACHI: Pakistan’s business confidence slipped across all major indicators in the fourth quarter of 2025 as inflationary pressures and persistent power outages weighed on sentiment, according to new survey findings released by Gallup Pakistan on Monday.

The results, drawn from interviews with 571 businesses for the 16th wave of the Business Confidence Index (BCI), show that while confidence has softened since Q2 2025, overall sentiment remains stronger than the same period last year.

Opinion on current business conditions fell from +20% to +8%, future expectations declined from +22% to +12%, and views on the country’s direction worsened from –2% to –8%, pointing to a more cautious economic outlook.

“Business Confidence has slided minorly, but the message from businesses is clear: economic stabilization is not enough, without a stronger growth rate, sentiment will continue to move in short bursts rather than in a steady upward path." said Bilal Gilani, Executive Director of Gallup Pakistan and Director of the Economic Indicators Series.

"Stability helped, but growth now has to take the lead. PMLN led government however continues to be entrusted with confidence by the wider business community to bring relief and reforms.” 

Inflation remained the most cited concern, with 33% of businesses urging the government to prioritize price stability amid recent upward movements in food and energy markets. Power supply issues also persist, with 42% of firms reporting load-shedding on the day of the survey, similar to last year despite large investments in electricity infrastructure.

On economic governance, 46% of businesses said the current government of premier Shehbaz Sharif led by ruling PML-N party is performing better than the previous administration led by jailed ex-PM Imran Khan, unchanged from Q2 and five points higher than a year earlier.


From classrooms to screens: Pakistan schools go online amid Middle East war-driven oil crisis

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From classrooms to screens: Pakistan schools go online amid Middle East war-driven oil crisis

  • Government orders school closures, remote work and fuel cuts to conserve energy
  • Measures follow oil price surge linked to US-Israeli strikes on Iran and regional tensions

RAWALPINDI: Some schools in Pakistan shifted to online learning this week as authorities introduced emergency fuel-saving measures after global oil prices surged due to the escalating conflict involving the United States, Israel and Iran.

The government has ordered a series of austerity steps aimed at reducing fuel consumption, including temporary school closures, remote work arrangements for a portion of government and private sector employees, and sharp cuts in fuel allocations for official vehicles. The measures were introduced after international oil prices jumped amid fears the widening Middle East conflict could disrupt supplies passing through the Strait of Hormuz, a vital global energy shipping route, raising costs for import-dependent economies such as Pakistan.

Parents in cities including Rawalpindi said many educational institutions had already informed families through social media that classes would be conducted online while campuses remained closed.

“Hopefully, all the schools will remain closed today because many of the institutions have already shared the message on social media that we will be taking classes online for the students,” said Misam Abbas, a 30-year-old father of schoolchildren.

Pakistan’s education system is still recovering from severe disruptions during the COVID-19 pandemic, when schools across the country remained closed for extended periods and millions of students shifted to remote learning. 

The closures lasted around 10.5 months in some areas, affecting nearly 40 million school-age children, while limited Internet access and digital devices meant many students could not fully participate in online classes. Education experts say the prolonged shutdowns caused significant learning losses and pushed some children permanently out of the school system. 

Even after the pandemic, schooling in Pakistan has faced repeated interruptions due to environmental and health emergencies. In recent years, dense winter smog, extreme heatwaves and cold spells have frequently forced authorities to suspend classes, sometimes for 10 to 12 days at a time, shortening the academic year and disrupting teaching schedules. 

Analysts warn that repeated closures and the shift to online learning, often difficult for students without reliable Internet access, continue to strain an already fragile education system. 

For many families, the sudden switch to remote learning has also raised concerns about prolonged disruptions to education if the austerity measures remain in place.

“They [the government] should not close [schools] for a long time because it suffers a lot. The students… should think that they are to close the school for two to three days, not for all the weeks, not for two to three weeks because that can suffer the studies of these small kids,” Abbas said.

Pakistan imports most of its crude oil and refined petroleum products, making domestic energy costs highly sensitive to global price swings during geopolitical crises.

“Our situation should not be affected by the world’s situation. The world is already in a bad situation. But in our country, we should have some good system so that people cannot be affected by those circumstances,” Abbas said.