Gallup Pakistan today released the 16th wave of its Business Confidence Index (BCI), capturing the views of 571 statistically selected businesses across Pakistan for Q4 2025 (October–December). The survey measures current business performance, future expectations, and perceptions of the country’s direction — offering a timely and broad-based pulse of Pakistan’s business climate.
The survey indicates a decline in confidence since Q2 2025, but it remains stronger than it was last year. The findings show a moderate decline across all three components of the index compared with Q2 2025. The opinion on current business conditions fell from +20% to +8%, indicating that fewer businesses now describe their situation as good or very good.
The perceptions on future business expectations declined from +22% to +12%, a 10-point drop in optimism, while views on the direction of the country worsened from –2% to –8%, reflecting a slightly more pessimistic outlook.
Despite this softening, all three scores remain better than those in Q4 2024 and most of 2022–2023, suggesting an improvement in medium-term business sentiment.
Inflation remains the most frequently cited problem, with 33% of businesses advocating for the government to prioritize price stability. After a consistent decline in the inflation rate, the recent few months have seen an upward movement across food and energy markets in Pakistan.
42% of businesses reported power outages on the day of the survey, similar to last year.
Despite massive investment in electricity infrastructure, consistent supply remains a major challenge, crippling the economy.
Regarding economic management, 46% of businesses rate the current PML-N government’s performance as better than the previous PTI administration, unchanged from Q2 and 5 points higher than a year ago.
Bilal Gilani, Executive Director of Gallup Pakistan and Director of Economic Indicators Series at Gallup Pakistan, comments ‘Business Confidence has slid 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.
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.”
