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.
