Business confidence rebounds in Q2 2026, outlook strengthens: Khurram Schehzad

ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 23rd Jul, 2026) Business confidence in Pakistan rebounded during the second quarter (Q2) of 2026, with firms reporting improved current business conditions and stronger expectations for the year ahead, Adviser to the Finance Minister, Khurram Schehzad said here Thursday, citing the latest Gallup Pakistan Business Confidence Index.

In a post on social media platform X, Khurram Schehzad said all three major components of the Business Confidence Index registered improvement during the quarter, reflecting growing optimism among businesses about the country's economic outlook.

According to the survey, the Current Business Conditions indicator improved by nine percentage points, rising from negative 19 percent in the previous quarter to negative 10 percent in Q2, 2026. Around 45 percent of businesses described current business conditions as good, showing a notable improvement over the previous quarter.

The Future Business Conditions indicator recorded the strongest gain, increasing by 25 percentage points to positive 12 percent and turning positive for the first time in three quarters.

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The survey found that 56 percent of businesses expected business conditions to improve over the next 12 months.

The Direction of the Country indicator also improved by 12 percentage points, indicating a more positive assessment of Pakistan's overall economic trajectory compared to the previous quarter.

Schehzad said Gallup Pakistan attributed the improvement in business sentiment to easing external uncertainty and lower fuel prices ahead of the survey period.

Quoting the Executive Director of Gallup Pakistan, he said, "There is no doubt there is recovery in business confidence in the country."

The survey covered 527 businesses from the manufacturing, services, construction, financial services, and wholesale and retail trade sectors across 40 districts and cities of Pakistan.

Schehzad said that despite existing challenges, the latest survey reflected a clear improvement in business sentiment, with confidence and expectations moving in the right direction, providing an encouraging signal for the country's economic outlook.