Islamabad: As many as 72 per cent of businesses in Pakistan are troubled by default risks while 90 per cent are not supportive of the country's economic direction, according to a recent Gallup survey, reported The Nation.

The report further read that this is a worrying sign for Pakistan's economy, as businesses are the backbone of any nation's economy.

The ongoing political disputes in the nation are the primary cause of this gloomy economic picture. Investor confidence has decreased as a result of the ongoing disputes between the government and the opposition, which have caused an unpredictable economic environment. Companies are reluctant to make investments in such a setting for concern that their money may not be secure in the long run, according to the survey.

Consumer spending has already decreased as a result of the pandemic in recent years, which has had a negative impact on businesses, especially small and medium-sized ones (SMEs). The energy crisis and the restriction on the import of raw materials have also caused issues for large-scale industries also, as per a report published in The Nation.

According to the Gallup survey, businesses in Khyber Pakhtunkhwa and Sindh are the most negatively impacted, with 70 per cent of respondents indicating difficult times for their economic prospects, compared to 64 per cent of respondents in Punjab. In these areas, businesses are having a particularly difficult time surviving due to a lack of government support and a difficult business climate.

The government must act immediately to address the concerns of corporate fears and boost investor confidence in the economy. The government must put its attention on fostering a stable political climate and enacting laws that will benefit enterprises, especially SMEs (Small and Medium Enterprises), which are the foundation of the national economy, The Nation reported.