The Gallup Business Confidence Index report reveals growing dissatisfaction among business owners regarding Prime Minister Shehbaz Sharif’s economic management. The survey, covering 454 small, medium, and large businesses from over 30 districts in the second quarter of 2024, highlights increased pessimism due to ongoing political turmoil and a tax-heavy budget.
Key Findings:
- Negative Sentiment Across the Board:
- The Index reported declines in scores for the current business situation, future business situation, and the direction of the country, ranging from 4% to 10%.
- Unfavorable Financial Plan:
- A significant number of businesses view the government’s new financial plan for FY25 as not business-friendly.
- Approximately 40% of businesses identified inflation as their biggest challenge.
- Inflation and Price Hikes:
- Price hikes remain a critical concern, with 37% of businessmen prioritizing government intervention on this issue.
- Inflation, which surged to 12.6% in June, continues to erode consumer purchasing power.
- Comparative Economic Management:
- Over 54% of businesses believe the current Pakistan Muslim League-Nawaz (PML-N) government is performing worse in economic management compared to the previous administration.
- Load-Shedding Issues:
- 60% of businesses report experiencing severe load-shedding.
- An increase of 16% in reported power outages is attributed to the heavy load on the power infrastructure during summer.
- Overall, 61% of businesses acknowledged facing load-shedding, while 39% reported no such issues.
The Gallup Business Confidence Index report underscores the urgent need for the government to address inflation, power shortages, and formulate business-friendly policies to restore confidence among business owners.
