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PM hails record business confidence
PM hails record business confidence

Business Recorder

time11-08-2025

  • Business
  • Business Recorder

PM hails record business confidence

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday expressed satisfaction over a recent Gallup Pakistan survey indicating a significant rise in business confidence, reaching its highest level in four years. According to the Gallup Business Confidence Index, business sentiment regarding Pakistan's economic direction improved notably, with the index score climbing to -2 in the second quarter of 2025 – the strongest reading since the final quarter of 2021. 'The surge in business confidence is a welcome sign and reflects increasing trust in the country's economic direction,' Sharif said a statement. He credited his administration's economic and institutional reforms for improving transparency and facilitating the business community. Business sentiment witnessing signs of improvement: Gallup Survey The prime minister highlighted a series of government initiatives, including the digitization of the Federal Board of Revenue (FBR), structural reforms in the energy sector, and broader institutional changes aimed at improving the investment climate. 'These reforms have opened new avenues for business and investment,' Sharif said. He added that improvements in macroeconomic indicators and recent upgrades to Pakistan's credit ratings by international financial institutions demonstrate the effectiveness of his administration's policies and a decline in corruption. Sharif also pointed to gains on the Pakistan Stock Exchange, where the benchmark KSE-100 Index recently crossed 147,000 points – an all-time high. He praised Finance Minister Muhammad Aurangzeb and his economic team for their role in stabilizing the economy. He said that the benefits of macroeconomic reforms are beginning to reach ordinary citizens and that efforts to enhance institutional performance will continue. He further stated that the government is expanding consultations with the business community to ensure continued support for enterprise and investment. Copyright Business Recorder, 2025

Despite challenges, business confidence rises
Despite challenges, business confidence rises

Express Tribune

time11-08-2025

  • Business
  • Express Tribune

Despite challenges, business confidence rises

Since the main beneficiary of the project would be KPT, a business and financing plan could be developed in collaboration with port authorities and the Ministry of Maritime Affairs, the cabinet committee said. photo: file The confidence of Pakistan's private businesses has surged to its highest level in nearly four years, according to the latest survey of Gallup Pakistan. Also, an increasing number of businessmen have started thinking that the government is managing the economy in a better way than the previous administration. The improvement comes despite inflation, high utility costs and electricity load-shedding, which continue to hinder business operations. The Business Confidence Survey for the second quarter of 2025 was conducted between July 23 and 27, capturing the views of 524 businesses across manufacturing, services and trade sectors. The standout finding is a significant rebound in perception of the country's overall direction. The "Direction of the Country Score" now stands at -2%, a sharp improvement from the far more pessimistic readings of late 2024. While the score remains marginally negative, it marks the highest level of confidence in national direction since Q4 2021. "This uptick suggests a moderate easing of political and economic uncertainty from the perspective of the business community," the survey said. The number of businesses holding a good perception about the government's ability to manage the economy has improved over the past year. According to the survey, 46% of businessmen called the government's management of the economy better than its predecessor, compared to 24% a year ago. Commenting on the survey, Gallup Pakistan Executive Director Bilal Ijaz Gilani said the latest edition was pointing to a "cautiously improving mood" among Pakistani businesses. "While the shift is incremental, it reflects a growing sense of stabilisation among economic actors," he said. The most visible change, Gilani said, was improvement in perception of the direction of the country and also the positive trend in trust in the government's handling of the economy. "As always, sustained momentum will depend on continued macroeconomic reforms, policy consistency and greater institutional responsiveness, especially towards businesses operating outside the formal sector," said the official. Business performance was another area that showed encouraging signs as 61% of respondents described their current operations as "good" or "very good," up six percentage points from the previous wave. While services and trade enterprises reported the largest gains, the respondents from the manufacturing sector underscored comparatively slower signs of recovery. The survey found 61% of businesses optimistic about the coming months, with the Future Business Confidence score improving by just one percentage point. "This indicates that while businesses are not anticipating worsening conditions, there is also limited momentum for stronger optimism at this stage," the survey said. Asked about challenges, the businessmen cited price hike, high energy costs and taxes as their biggest concerns, which shows the structural challenges remain deeply entrenched in Pakistan's business sector. The Consumer Price Inflation, which eased to a record 0.3% in April from 38% in May 2023, emerged as the most pressing issue, cited by 28% of respondents as the top priority for government action. High utility costs, 18%, while concerns over taxation, 11%, exhibited a slight decrease from last year's levels. Energy insecurity also continued to affect operations as nearly half, 47%, of those surveyed said they were experiencing load-shedding on the day of the interview. "While still a concern, this figure is lower than during the same quarter in prior years, indicating some potential seasonal or regional relief," said the survey. Overall, the survey indicates a measured improvement in private sector sentiment, especially regarding businessmen's perceptions of national direction and current business operations.

Nearly half of Pakistani businessmen confident in country's direction — Gallup
Nearly half of Pakistani businessmen confident in country's direction — Gallup

Arab News

time11-08-2025

  • Business
  • Arab News

Nearly half of Pakistani businessmen confident in country's direction — Gallup

KARACHI: Nearly half of Pakistani businessmen believe the country is moving in the right direction, a Gallup Pakistan survey published on Monday showed, with sentiment climbing to its highest level since late 2021 amid signs of political and economic stabilization. The 'direction of country' score — the percentage of respondents who think Pakistan is on the right track minus those who think it is headed the wrong way — rose 62 points in the second quarter of 2025 to –2 percent from –64 percent a year earlier, according to the Gallup survey, whose results are based on interviews with 524 businesses in the manufacturing, services and trade sectors conducted between July 23 and 27. The improvement comes after Pakistan secured a $7 billion IMF bailout in September 2024 to avert a sovereign default and began implementing fiscal and structural reforms aimed at stabilizing its crisis-hit economy. '46 percent of businessmen rated the ruling Pakistan Muslim League-Nawaz (PML-N) government's management of the economy as better than its predecessor, the Pakistan Tehreek-e-Insaf (PTI), compared to just 24 percent a year ago,' the Gallup report said. 'While the score remains marginally negative, it marks the highest level of confidence in national direction since Q4 2021,' it added. 'This uptick suggests a moderate easing of political and economic uncertainty from the perspective of the business community.' Sixty-one percent of surveyed businessmen rated their ongoing operations as 'good' or 'very good,' up six percentage points from the previous survey wave. The manufacturing sector showed slower signs of recovery than trade and services. Top concerns were rising prices, high energy costs and taxes. Twenty-eight percent of respondents said controlling inflation should be the government's highest priority. Pakistan's consumer inflation rose to 4.1 percent year-on-year in July, up from 3.2 percent in June, driven by higher food, fuel and medicine prices. High utility costs were cited by 18 percent of respondents, while 11 percent pointed to taxation. The survey also recorded a notable decline in reported bribery, with 15 percent admitting to paying a bribe in the past six months, down from 34 percent in Q4 2024. Traders reported the highest bribery rate at 20 percent, followed by 13 percent among service providers and 12 percent among manufacturers. Gallup Pakistan Executive Director Bilal Ijaz Gilani described the results as reflecting a 'cautiously improving mood' among businesses. 'While the shift is incremental, it reflects a growing sense of stabilization among economic actors,' he said. 'As always, sustained momentum will depend on continued macroeconomic reforms, policy consistency, and greater institutional responsiveness, especially toward businesses operating outside the formal sector.' Gilani said the most notable change was improved perceptions of the country's direction and growing trust in the government's economic management. While the survey points to a rebound in business confidence, analysts say Pakistan's long-term economic trajectory will depend on its ability to sustain reforms, rein in inflation, and ease the cost of doing business in the $375 billion South Asian economy.

Public discontent grows in Pakistan's northwest province ruled by Imran Khan's party — Gallup
Public discontent grows in Pakistan's northwest province ruled by Imran Khan's party — Gallup

Arab News

time14-07-2025

  • Business
  • Arab News

Public discontent grows in Pakistan's northwest province ruled by Imran Khan's party — Gallup

ISLAMABAD: A new Gallup Pakistan survey reveals a sharp decline in public satisfaction in the northwestern Khyber Pakhtunkhwa (KP) province where the Pakistan Tehreek-e-Insaf (PTI) party of former Prime Minister Imran Khan has ruled for over a decade, with residents citing poor infrastructure, widespread unemployment and lack of accountability The findings, based on face-to-face interviews with 3,000 residents across KP's seven divisions, offer a rare look at grassroots sentiment in a province that has long been a PTI stronghold. The survey was conducted in February and March 2025, with analysis completed by June. PTI first came to power in KP in 2013 and has governed the province since. Following the last general elections in 2024, the party formed the provincial government once again, even as its founder, Imran Khan, remains in jail on multiple legal charges he says are politically motivated. 'Despite 13 years of PTI governance, even its own voters are expressing disappointment,' the Gallup survey report said. 'Up to 49 percent of PTI supporters said no recent development had taken place in their area.' A majority of respondents, 59 percent, reported rising unemployment, while 67 percent said the government had failed to create jobs or business opportunities. Basic services remain uneven: 66 percent said gas was unavailable, and 49 percent reported poor or no electricity access. Facilities for youth are especially lacking: 77 percent said they lacked access to parks, 81 percent to libraries, and 70 percent to community centers. Corruption was a recurring theme across sectors. 52 percent of respondents believe development funds were misappropriated, and just 32 percent said they were used properly. Support for accountability was high even among PTI supporters. '71 percent of respondents, including 62 percent of PTI voters, support formal investigations into alleged corruption in mega projects during PTI's rule,' Gallup Pakistan said. A further 48 percent said corruption in government departments has increased, and 40 percent believe it is more prevalent in KP than in Punjab. HEEALTH CARD YES, GANDAPUR NO The PTI's flagship health insurance scheme, the Sehat Card, remains the most popular initiative, with 83 percent of respondents, 88 percent of them PTI voters, saying it has improved health care access. Yet only 38 percent of respondents said current KP Chief Minister Ali Amin Gandapur is performing better than his predecessors, and 47 percent said they would prefer to see Imran Khan in the role despite his ongoing imprisonment and legal battles. Half the respondents said Punjab's chief minister Maryam Nawaz Sharif is performing better than Gandapur. 'The contrast between continued support for PTI's welfare programs and disillusionment with current leadership signals a shift in political expectations,' the report observed. The disconnect between government and people on federal ties also comes up in the survey. The PTI-led government has been at odds with the federal administration since at least the 2024 election and even earlier, engaging in protests and public disputes. Yet the Gallup report shows '85 percent of KP residents favor stronger collaboration between the provincial and federal governments,' suggesting popular support for more cooperative governance. Another 60 percent of respondents said the KP government had 'wasted time in protests and demonstrations rather than focusing on governance.' The formal justice system is also under increasing public scrutiny. The survey found that 70 percent of respondents feel courts take too long to deliver justice, 50 percent consider the judiciary corrupt, and 53 percent believe court decisions are politically influenced. In contrast, traditional tribal dispute resolution mechanisms, or Jirgas, are gaining favor. '84 percent of those aware of the Jirga system support it, and 70 percent believe Jirga decisions are fair,' Gallup reported. In conclusion, the Gallup Pakistan survey shows that while PTI still enjoys loyalty from a core voter base, rising economic pressures, lack of development and demand for transparency have eroded its standing among the broader population. 'The survey offers a sobering assessment of public sentiment across KP. Despite strong backing for select welfare programs and the continued popularity of PTI among its base, citizens are increasingly frustrated with lackluster service delivery, limited job opportunities, corruption, and unfulfilled promises,' the concluding note in the survey report said. 'The overwhelming demand for accountability and equitable governance signals a critical juncture for provincial leadership and institutions.'

Hassan Abbas on the Resurgent Support for Pakistan Army's Rise, Post-Operation Sindoor
Hassan Abbas on the Resurgent Support for Pakistan Army's Rise, Post-Operation Sindoor

The Diplomat

time07-07-2025

  • Politics
  • The Diplomat

Hassan Abbas on the Resurgent Support for Pakistan Army's Rise, Post-Operation Sindoor

'The sense of external threat and national unity has led many Pakistanis to rally around the armed forces, although this resurgence in support may prove to be transient.' The Pakistan military's image has improved in the eyes of the Pakistani people following the four-day India-Pakistan military strikes in May. A recent survey conducted by Gallup Pakistan found that 93 percent of those polled felt their view of the military had improved following the clashes with India. There has been an outpouring of nationalist pride in the military, and the stature of Army Chief Gen Asim Munir, who was promoted to the post of field marshal and hailed as a 'savior' following the clashes, has grown further in the wake of his meeting with U.S. President Donald Trump. Only a few months ago, the Pakistani military was deeply unpopular in the country, despised for its role in the ouster and incarceration of Prime Minister Imran Khan, Pakistan's most popular politician, and its brutal crackdown on his supporters. That has changed since May. The military's newfound popularity has raised concerns over its possible assumption of a role in governance. Sharing his insights into the changed public mood in Pakistan vis-à-vis the military, Pakistani-American scholar, Hassan Abbas, a distinguished professor of International Relations at the Near East South Asia Center for Strategic Studies in Washington, D.C., said that while the current popularity of the military 'may seem to favor an enhanced military role [in politics],' 'support for the military tends to erode once political mismanagement or authoritarian overreach becomes apparent.' Pakistan's history suggests that the people will eventually push back against 'prolonged military interference in politics,' he told The Diplomat's South Asia editor Sudha Ramachandran. In a recent interview, you suggested that the terror attack at Pahalgam in Jammu and Kashmir may have been perpetrated by groups like the Islamic State of Khorasan (ISKP). What could have motivated such an attack, and do you believe India responded in a way that may have served the attackers' interests? In the absence of verifiable evidence, the mutual recriminations between India and Pakistan following the Pahalgam attack are not only unproductive but also risk obscuring the possibility of third-party involvement. It is imperative to consider the strategic calculus of transnational extremist groups, particularly the ISKP, which has demonstrated both intent and capability to launch high-profile attacks in the region. ISKP thrives on instability and confrontation between regional powers, especially India and Pakistan. An escalation in bilateral tensions serves its objectives in several ways: it diverts security resources away from counterterrorism, deepens sectarian and nationalist divides, and creates fertile ground for recruitment by heightening a sense of crisis. If indeed ISKP or similar entities orchestrated the attack, one could argue that India's immediate attribution of blame to Pakistan, without conclusive evidence, may have inadvertently validated the group's strategy—playing regional rivals against each other to carve out operational space. The group's motive would thus be to provoke military responses, undermine dialogue, and benefit from the distraction of two nuclear-armed states consumed by mutual hostility. There has been much speculation about the meeting between U.S. President Donald Trump and Pakistan's Chief of Army Staff General Asim Munir. What are your insights into this high-level interaction? The Trump-Munir meeting was indeed unexpected and, according to informed observers, was arranged through discreet channels — most likely between the White House and Pakistan's military or intelligence leadership. While exact details remain unknown, publicly available information and informed speculation suggest that Iran was a major point of discussion. Gen Munir's recent visit to Tehran alongside Prime Minister Shahbaz Sharif gave him firsthand insight into the evolving regional dynamics, especially in the context of the Israel-Iran confrontation. Trump's reported remarks about Gen Munir's deep understanding of Iran underscore that the meeting likely focused on strategic stability in the Gulf, avoiding a full-scale conflict, and exploring Pakistan's role in regional de-escalation. It is also plausible that Pakistan reiterated its interest in renewing U.S.-Pakistan defense ties and conveyed its position regarding the recent military exchange with India. Furthermore, Trump likely advised restraint vis-à-vis India, while urging Pakistan to intensify counterterrorism operations against the Tehreek-e-Taliban Pakistan (TTP), ISK, and Kashmir-focused extremist factions. The meeting signaled that Washington seeks to retain functional ties with Islamabad—not only to avoid pushing Pakistan entirely into China's orbit but also due to Pakistan's nuclear status and its pivotal location in an increasingly volatile region. How has this meeting between Trump and Munir been perceived across different segments of Pakistani society, including political parties, the public, and the military establishment? The reaction within Pakistan has been largely positive, particularly among the general public and segments of the military establishment. There was a sense of national pride that Pakistan's military leadership was received with such importance by the U.S. president, signaling international recognition of Pakistan's strategic relevance. This favorable perception is also shaped by a broader decline in anti-American sentiment in recent years—a notable shift from earlier periods marked by deep skepticism of U.S. intentions. However, critical voices have emerged, especially among civil society actors, independent analysts, and some political commentators. Their concerns center on the timing of the meeting — immediately preceding U.S. military action against Iran's nuclear infrastructure — which some view as problematic. A few critiques, often conveyed through social media or in measured opinion pieces, have warned against Pakistan being perceived as a complicit actor in potential regional escalation. There is also strong speculation that Trump may have raised the Abraham Accords in an effort to coax Pakistan into normalizing relations with Israel—contingent, perhaps, on tangible progress in the Israel-Hamas ceasefire and renewed hope for a two-state solution. Pakistan can potentially move in this direction if Saudi Arabia takes the lead. Some critics argue that strong military-to-military ties between the U.S. and Pakistan have historically undermined democratic institutions in the country. Why then is the renewed momentum in U.S.-Pakistan relations being celebrated so broadly? This criticism, while not unfounded, often overlooks the broader historical context. U.S.-Pakistan military cooperation has indeed shaped the country's strategic orientation since the 1950s, starting with alliances like SEATO and CENTO and later deepening during the Afghan Jihad in the 1980s. These alliances yielded significant economic and military benefits for Pakistan, albeit often at the cost of civilian oversight and democratic consolidation. It is true that much of this cooperation unfolded under military regimes, sidelining elected governments. However, there have also been notable exceptions. The U.S. played a quiet but constructive role in facilitating democratic transitions — such as the rise of Benazir Bhutto as prime minister in 1988 — and major aid packages like the Kerry-Lugar-Berman Act were delivered during civilian governments. Today, many Pakistanis view renewed engagement with the U.S. not through an ideological lens but as a pragmatic necessity — especially given the country's economic distress and security challenges. The celebration of renewed ties thus reflects both strategic calculations and public desire for international legitimacy and stability, rather than a rejection of democratic values. This revival or warming of U.S.–Pakistan relations also suggests that Pakistan is seeking to strike a balance in its ties between China and the U.S. Recent developments — including India-Pakistan clashes, the Munir-Trump meeting, and the Iran-Israel conflict — have improved the Pakistani military's public image. How do you interpret this shift? The Pakistani military's image had taken a significant hit in recent years, particularly due to its controversial role in the ousting of former Prime Minister Imran Khan and its heavy-handed treatment of the Pakistan Tehreek-e-Insaf (PTI) senior and mid-level leadership. Widespread public disillusionment followed, with unprecedented levels of criticism directed at the military, both online and in street protests, leading to severe backlash from law enforcement and intelligence agencies. However, the recent military skirmishes with India, especially what is perceived domestically as a tactical victory — including the downing of several Indian aircraft — have sparked a surge in nationalist sentiment. Pakistan's Operation Bunyan-un-Marsoos (translated as 'unbreakable wall' in response to India's Operation Sindoor), which showcased Pakistan's defensive capabilities and strategic preparedness, has helped rehabilitate the military's image. The sense of external threat and national unity has led many Pakistanis to rally around the armed forces, although this resurgence in support may prove to be transient. Public sentiment shifted dramatically after Operation Sindoor, with growing support for the military's role. Are Pakistanis now more accepting of a larger military footprint in political affairs? At present, public tolerance for an expanded military role in governance has indeed increased, largely due to national security concerns and the perception that the military is a stabilizing force amid regional turmoil. However, such support tends to be cyclical and situational. Pakistan's historical experience demonstrates that prolonged military interference in politics eventually triggers public pushback. Every military ruler — from Ayub Khan to Musharraf — ultimately exited under pressure and public discontent. While the current climate may seem to favor an enhanced military role, it would be premature to interpret this as a permanent shift in public attitudes. Pakistanis generally aspire to democratic governance, and support for the military tends to erode once political mismanagement or authoritarian overreach becomes apparent. Given his current popularity and institutional control, do you see Gen Munir being tempted to stage a formal coup? Or does he already wield sufficient power without one? Gen Munir is arguably in a more commanding position than many past military rulers, yet he has not needed to formally seize power. Through strategic alliances with the leadership of the Pakistan Muslim League (PML-N) and the Pakistan Peoples Party (PPP), the military has maintained de facto control without overtly undermining the constitutional order. This civilian-military alignment — where two of the country's three major political parties appear aligned with the armed forces — is highly unusual by Pakistani standards. While this arrangement has provided short-term stability, it raises questions about sustainability. Political volatility in Pakistan has historically defied expectations, and such alignments, if perceived as undemocratic, could fuel public backlash or fragmentation within the ruling coalition over time. While nationalism is surging in Pakistan, how have ethnic minorities — particularly in Balochistan — responded to this wave of military pride and assertiveness? Balochistan remains a complex and restive region, with its own political dynamics and historical grievances. While urban centers in the province have witnessed participation in nationalist fervor, this trend has not fully penetrated rural or insurgency-affected areas, where skepticism towards the central government and military remains high. The current regional instability — particularly the Iran-Israel confrontation — has created both risks and opportunities for Islamabad. On the one hand, it enables renewed focus on border control and counter-smuggling operations, which may curtail militant mobility. On the other, it offers the federal government a strategic opportunity to reset its approach toward Balochistan by pursuing reconciliation with disaffected groups and investing in meaningful political inclusion and development. Without such outreach, the underlying causes of unrest will persist. Does the recent shift in power dynamics mark the end of the road for Imran Khan and the PTI? Despite the sustained crackdown on the PTI leadership and Imran Khan's ongoing legal challenges, the party retains popular support and remains a formidable political force. In any free and fair electoral contest, the PTI is likely to perform strongly. However, the political environment is currently shaped by security concerns stemming from India-Pakistan tensions and regional instability involving Iran and Israel. The IMF has also helped bring in some financial stability lately. The apparent consensus among key power brokers to allow the current government — effectively a PML(N)-PPP coalition — to serve its full term until 2029 reflects a calibrated political arrangement. At the same time, both parties maintain significant national constituencies, and Bilawal Bhutto, in particular, appears to have a promising political future ahead. That said, Pakistan's political history is replete with sudden shifts, realignments, and popular upheavals. Imran Khan's political future cannot be written off, and the PTI's resilience — coupled with public discontent over economic and security conditions — may well redefine the political landscape in the future.

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