ISLAMABAD – Pakistan’s business climate appears to be facing deepening confidence crisis, with over 90percent of Pakistanis calling it extremely difficult to do business in the country, an Ipsos survey reveals.
The survey speaks of grim picture of challenges facing businesses, with the complex tax system emerging as the biggest concern. Some 46% of respondents identified complicated taxation as a major hurdle, making it the most widely cited obstacle to doing business. The lack of access to financing was another major concern, with 19% of respondents saying difficulties in obtaining loans were hampering business activity.
12% blamed corruption for creating obstacles, while 10% pointed to rising electricity and gas prices as a major burden on businesses. Another 7% cited government regulations, while 2% identified political instability as a key factor making it difficult to operate businesses.
The survey also revealed strong public demand for greater protection for businesses. As many as 76% of Pakistanis called for additional legislation from the government to protect businesses, highlighting widespread concern over the country’s business environment.
At the same time, the country’s mounting debt burden is also weighing heavily on public sentiment. Around 66% of respondents expressed concern over Pakistan’s rising debt burden.
Public opinion on the International Monetary Fund (IMF) programme was sharply divided. When asked whether the IMF programme is important for Pakistan’s economic stability, 30% of respondents described it as harmful, while only 19% considered it beneficial.
Meanwhile, 38% said the IMF programme provides no benefit to the public, reflecting significant skepticism over whether the country’s IMF-backed economic measures are translating into tangible relief for ordinary citizens.
The findings show a disconnect between the need for economic reforms and public confidence in the policies and institutions expected to deliver them, with taxation, financing, energy costs, regulation and debt emerging as major sources of concern.
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