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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.