Business confidence in Pakistan is on the rise, with many businessmen expressing optimism about their prospects. According to a recent survey, 55 percent of respondents believe their businesses are performing well, marking a 10 percent increase from six months ago. However, doubts persist as a significant number still feel the country is not moving in the right direction, a sentiment likely influenced by the prevailing political climate.

The manufacturing sector has shown slower recovery compared to the services and trade sectors. Despite this, 60 percent of businesses are hopeful about their future, a notable 19 percent rise from the previous survey. The overall business confidence score has also surged by 36 percent since Q2 2024.

Key factors contributing to this increased optimism include reduced inflation, macroeconomic stability, and interest rate cuts. However, concerns remain as many still perceive the country's direction negatively, although this sentiment has improved from previous surveys.

Opinions on economic management are divided, with 41 percent favoring the current ruling party and 38 percent preferring the previous government. Inflation remains the top concern for 30 percent of businesses.

On a positive note, the number of businesses experiencing power outages has decreased, with 56 percent reporting no load-shedding on the survey day. Additionally, service-providing businesses have decreased their workforce less than manufacturers and traders, reflecting an overall improvement in business confidence since Q2 2024.

This survey captures the growing optimism among Pakistan's business community while highlighting ongoing challenges and uncertainties.
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