Lahore – Nearly half of Pakistani traders believe the country is moving in the right direction, according to the latest Gallup Pakistan survey 2025. The “direction of country” score improved sharply to –2 percent in the second quarter of 2025, rising from a deeply negative –64 percent a year earlier.

The survey conducted between 23 and 27 July gathered responses from 524 businesses across manufacturing, services, and trade sectors. This marks the highest confidence reading since the fourth quarter of 2021.

Gallup attributes the improvement to the \$7 billion IMF bailout Pakistan 2024, fiscal reforms and political stabilization under the current government.

Gallup

PML-N Gains Ground Over PTI in Economic Ratings

According to the findings, 46 percent of business owners rated the Pakistan Muslim League-Nawaz (PML-N) government’s economic management as better than its predecessor, the Pakistan Tehreek-e-Insaf (PTI). This is a significant increase from 24 percent in 2024.

While the net sentiment score is still slightly negative, Gallup says the improvement reflects a “moderate easing of political and economic uncertainty.”

Key Survey Highlights

Gallup Pakistan survey 2025 results show:

  • 50% believe the country is on the right track.
  • 61% rated their ongoing business operations as “good” or “very good,” up 6 points from the previous wave.
  • 28% cited (inflation) as their biggest concern.
  • 18% pointed to bijli ke bill (high utility costs) as a major issue.
  • 11% identified taxation as their top worry.
  • Bribery incidents fell to 15%, down from 34% in Q4 2024.
Inflation28%
High utility costs18%
Taxes11%

Inflation and Energy Costs Pressuring Businesses

Despite improving sentiment, inflationary pressure remains. Pakistan’s consumer price index rose to 4.1% in July 2025, compared to 3.2% in June. Higher food, fuel and medicine prices have squeezed both households and industries.

Business owners also cited rising energy costs in Pakistan as a persistent challenge particularly for manufacturing. Gallup’s data shows this sector lagging behind trade and services in recovery pace.

Bribery Rates Decline

One positive trend is the sharp decline in reported bribery cases. In Q2 2025, only 15% of respondents said they had paid a bribe in the last six months, compared to 34% at the end of 2024.

  • Traders reported the highest bribery rate at 20%.
  • Service providers followed at 13%.
  • Manufacturers had the lowest at 12%.

Analysts Caution on Long-Term Outlook

Gallup Pakistan Executive Director Bilal Ijaz Gilani described the business mood as “cautiously improving,” but warned that sustained progress will require policy consistency and institutional responsiveness.

Economic analysts agree that Pakistan’s economic reforms must continue beyond immediate IMF program requirements. They point out that controlling inflation, lowering electricity bills and reducing the cost of doing business will be key to sustaining confidence in the \$375 billion economy.

Policy Direction in Focus

While the PML-N government’s performance ratings have improved, traders remain watchful of future fiscal measures. Taxation and regulatory burdens remain sensitive issues with businesses calling for predictable policy frameworks.

The government has signaled plans to expand industrial incentives, reduce non-essential imports and improve energy sector efficiency — policies many see as critical to supporting Pakistan’s manufacturing and exports.