Author name: Web Desk

KARACHI, April 23: Pakistan’s private sector confidence has deteriorated sharply in the first quarter of 2026, with a majority of businesses reporting worsening conditions amid rising energy costs and spillover effects from regional geopolitical tensions, according to a survey released by Gallup Pakistan. Read More: https://theboardroompk.com/karachi-businessmen-urges-govt-to-tackle-rising-extortion-robberies/ The 17th quarterly Gallup Business Confidence Survey, conducted in April 2026 based on responses from 510 businesses across the country, shows a broad-based decline across all key indicators — current performance, future expectations and perception of national direction. Only 41% of businesses described their current operations as “good” or “very good,” reflecting a 13 percentage point drop from the previous quarter. The net proportion of firms reporting positive conditions has fallen by 27%, indicating a clear shift toward pessimism after earlier gains. The outlook for the coming months appears even weaker. While 44% of respondents expressed optimism about future performance, a larger 57% expect conditions to worsen. The net future confidence score has declined by 25% compared to Q4 2025, pointing to growing uncertainty and weakening business momentum. Perceptions regarding the country’s overall direction also deteriorated significantly, with the score dropping to -32% from -8% in the previous quarter. The Gallup survey report notes that sentiment has firmly entered negative territory, reflecting heightened concern among businesses about the broader economic trajectory. Structural challenges continue to weigh heavily on the private sector. Inflation remains the top concern, cited by 37% of businesses, while concerns over fuel and petrol prices surged to 25%, highlighting intensifying cost pressures. Energy reliability remains another major issue, with 57% of firms reporting load-shedding on the day of the survey, a 15 percentage point increase from the previous quarter. Rising costs have emerged as the dominant operational risk, with 62% of businesses identifying inflation and input costs as their biggest challenge. The Gallup survey also shows declining confidence in economic management, as 46% of respondents believe governance has worsened, compared to 33% who see improvement. A key feature of the latest Gallup survey is the strong impact of regional developments, particularly tensions in the Middle East. Around 81% of businesses reported negative effects linked to these developments, primarily through rising fuel and energy costs. Nearly 58% of firms said their energy expenses had increased, while 73% reported overall cost escalation compared to the previous quarter. Looking ahead, 76% of businesses expect conditions to deteriorate further if regional instability persists over the next three months. The report concludes that Pakistan’s business environment is facing a period of heightened uncertainty, driven by a combination of domestic economic pressures and external shocks. While some sectors continue to show resilience, the overall trajectory suggests stagnation risks in the near term. Commenting on the findings, Bilal I. Gilani, Executive Director at Gallup Pakistan, said the simultaneous decline across all major indicators signals a clear shift toward pessimism within the business community, with external cost pressures playing a central role in shaping sentiment.

Karachi, April 23 : Meezan Bank has reported that its monthly card spend has exceeded Rs45 billion, signalling a significant shift in consumer payment behaviour and reinforcing the rapid growth of Pakistan’s digital payments ecosystem. Read More: https://theboardroompk.com/strong-banking-industry-link-pakistan-bankislami-pushes-for-sme-financing-boom/ The milestone comes amid a broader transition toward cashless transactions, with increasing adoption of cards, mobile applications and QR-based payments across the country. Banking industry data suggests that consumers are steadily moving away from cash, driven by convenience, security and expanding acceptance of digital payment channels. According to the State Bank of Pakistan, digital retail transactions in the country have reached 3.1 billion in a single quarter, with a cumulative value of Rs64 trillion. The central bank’s instant payment system, Raast, recorded 645.7 million transactions amounting to Rs18.5 trillion, while the total number of payment cards in circulation has risen to 66.7 million. Within this expanding landscape, Meezan Bank’s latest figures highlight the growing role of Islamic banking institutions in advancing digital financial services. Industry observers note that Shariah-compliant banks are increasingly investing in technology-driven solutions, positioning themselves competitively alongside conventional banking channels. The rise in card usage reflects evolving spending patterns, with consumers using cards for retail purchases, dining, travel, e-commerce and day-to-day transactions. Meezan Bank official said that this behavioural shift is being supported by improved payment infrastructure, wider merchant acceptance and enhanced security features. Meezan Bank attributed its growth to continued investment in secure payment systems and customer experience. These include advanced fraud monitoring, stronger authentication protocols and tokenised payment solutions, aimed at ensuring safer transactions across both local and international platforms. Meezan Bank official said that sustained growth in digital payments can deliver broader economic benefits, including improved documentation of financial activity, reduced reliance on cash handling and greater formalisation of the retail economy. It may also support financial inclusion by enabling easier access to banking services for previously underserved segments. With regulatory backing and ongoing initiatives such as Raast and merchant digitisation, Pakistan’s shift toward a cashless economy appears to be gaining pace. Meezan Bank’s Rs45 billion monthly card spend milestone is being seen as a reflection of this transition, underlining the increasing trust of consumers in digital financial services and the sector’s role in shaping a more connected and transparent economy.