The Gallup Business Confidence Index has reached an all-time low as a result of inflation, load-shedding, and a general lack of confidence, among other factors affecting the business community.
Because of the country’s political and economic situation, entrepreneurs are becoming increasingly pessimistic about the state of their businesses.
According to a Gallup Pakistan survey conducted for the Gallup Business Confidence Index in the fourth quarter of 2022, 65 percent of business owners believe their companies are in trouble. Industrial machine businesses are doing the best of all business types, with 75% saying business conditions are good, while cloth and garment shops have the lowest level of confidence, with 81 percent saying business conditions are bad.
According to the survey results, the Net Future Business Confidence score has dropped by half since the beginning of 2022, to -10 percent.
When compared to earlier this year, the number of businesses that believe the country is heading in the wrong direction has increased by 32%. Less than 15% of businesses in Punjab, Sindh, and Khyber-Pakhtunkhwa believe the country is on the right track, while a quarter of businesses in Balochistan agree.
Inflation remains the most-cited problem that businesses want the government to address by the end of this year, according to the findings of a survey conducted in the first quarter of 2022.
According to the survey, up to 72 percent of the businesses surveyed reported daily load shedding. The number of businesses experiencing load-shedding increased significantly in the fourth quarter, with approximately 19% of those reporting load-shedding within a day experiencing it for two hours.
In the first quarter of 2022, as many as 81 percent of businesses believe the court system is not fair, impartial, or uncorrupted, up from 7 percent in the previous quarter. According to survey results, more businesses in Balochistan disagree with the notion that the court system is fair, impartial, and uncorrupted than in any other province.
Almost a quarter (26 percent) of those polled reported that tax officials did not visit or inspect their businesses. Only a quarter of businesses reported being visited by tax officials, a 12 percent decrease from the previous wave. Over half of the businesses were not visited by tax officials in both quarters.