According to the latest survey, Pakistan’s businessmen are gaining confidence about their businesses’ prospects, which they believe are improving. However, most of them still opine that the country is not heading in the right direction, a perception that the survey report said may reflect the overall political situation in Pakistan and is less linked with economic management.
According to the Gallup Pakistan Business Confidence Index Q4 2024 survey report, 55% of businessmen think their businesses are doing well.
This shows a 10% increase in their perception over the survey conducted six months ago in Q2 2024. The fieldwork did not happen in Q3. The number of businesses who used to rate themselves as very bad has declined by 7%. The report said that the manufacturing sector seems to have recovered less than the services and trade sectors when it comes to rating the current business situation.
The business community is more optimistic about their future, as their score has risen 19% from six months ago. 60% of businesses in the Q4 survey showed positive expectations about their future, while 40% saw things worsening. The Net Future Business Confidence score has increased by 36% since Q2 2024.
“Reduction in inflation, macroeconomic stability and interest rate cuts contribute to large decreases in business pessimism,” according to the survey report.
However, the number of such businesses has reduced by 20% compared to the previous survey as the index has improved from negative to poor confidence, as defined by Gallup in its methodology.
The report said, “Overall, the trend for the past few quarters has been consistently negative; however, there has been some improvement in the current quarter. ”
When asked which government managed the economy well, 41% of the businesses surveyed named the ruling Pakistan Muslim League-Nawaz, while 38% rated the government of former jailed Prime Minister Imran Khan as better managers. Twenty-one percent saw no difference in the performance of the two governments.
Backbreaking inflation, which erodes consumers’ purchasing power, was cited as the most important problem 30% of businessmen would want the government to solve. “More service-providing businesses than manufacturers and traders decreased their workforce, ” the survey results showed.
Overall, the report said, all three strands of Gallup Business Confidence have improved since Q2 2024, showing growing optimism in the business community.
This latest survey is the 14th edition of a quarterly Business Confidence Survey that Gallup Pakistan conducted in more than 30 country districts, surveying 482 small, medium and large businesses.
