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Islamabad, Pakistan – A recent Gallup Pakistan survey reveals a mixed bag of sentiments within the Pakistani business community about Pakistan Business Confidence. While there’s a slight improvement in the perception of current business conditions, concerns regarding the future and the country’s direction remain high.
Key Findings:
- 73% Doubt Government’s Effectiveness: A significant majority (73%) of businesses express skepticism about the newly elected government’s ability to address critical business challenges.
- Slight Improvement in Current Conditions: 47% of businesses view their current situation as poor or worsening, reflecting a 3% improvement from the previous quarter.
- Inflation and Rupee Devaluation Remain Top Concerns: Inflation continues to be the biggest hurdle for businesses, followed by a desire for government intervention to stabilize the depreciating Rupee.
- Future Business Outlook Dims: Business sentiment regarding future conditions weakens, with the net future business confidence score dropping by 16% to 4% in Q1 2024.
- Uncertainty in Country’s Direction: Only 20% of respondents believe Pakistan is headed in the right direction, marking a significant decline to -60% in the country direction score.
- Power Outages Persist: Despite government claims, the number of businesses experiencing power outages has increased by 7% to 45% in Q1 2024.
- Bribery as a Business Survival Tactic: A concerning trend emerges, with some service providers and manufacturers resorting to bribery to maintain operations.
- Positive Signs Amidst Challenges: Bilal Ijaz Gilani, Gallup Pakistan’s Executive Director, highlights a silver lining – more businesses perceive an improvement in their current situation.
Read Also: Positive Real Interest Rate Recorded in March 2024: AHL Report
Call to Action for Policymakers:
The survey underscores the need for the government to prioritize policy stability and continuity. Proactive engagement with the business community to address their concerns is crucial for fostering a more optimistic economic outlook.
Survey Methodology:
This Gallup Business Survey, the 12th of its kind, polled approximately 535 businesses across Pakistan. It serves as a valuable tool for policymakers to gauge business sentiment and make informed decisions.