Consumer optimism in Pakistan hits six-year high amid economic concerns

There has been a slight improvement in consumer confidence in Pakistan, with optimism about the country’s direction reaching its highest level in six years, according to a recent survey by Ipsos, a global market research firm.

However, economic concerns continue to dominate the public’s outlook, with inflation and unemployment remaining the most pressing issues.

The Ipsos Global Consumer Confidence Index (GCCI) survey, conducted from February 11 to 18, 2025, reveals that 31% of Pakistanis believe the country is heading in the right direction, up from 19% in the fourth quarter of 2024.

Despite this increase, 69% of respondents still feel Pakistan is on the wrong track.

The survey, which included over 1,000 respondents. While there is growing optimism about the future, economic challenges continue to weigh heavily on the population.

Economic Concerns Remain Paramount

Inflation remains the top concern for Pakistanis, with 69% of respondents citing it as the most worrying issue.

Unemployment follows closely, with 61% of respondents expressing concern.

Other economic issues, such as increasing poverty and rising electricity prices, have also seen significant declines in public concern over the past year. The burden of additional taxes, while still a concern for 8% of respondents, has decreased by 10 percentage points.

The survey reveals that 63% of Pakistanis believe the country’s current economic condition is weak, while only 20% describe it as strong. However, the number of people who view the economy as strong has increased fivefold since the first quarter of 2024.

Confidence in making household purchases remains low, with 88% of respondents stating they are not comfortable making daily purchases. Despite this, comfort levels have tripled over the past year, indicating a gradual improvement in consumer sentiment.

Future Expectations

Looking ahead, 40% of Pakistanis expect the economy to weaken in the next six months, while 31% anticipate improvements.

Optimism about the economy has risen significantly, from 12% in August 2024 to 31% in February 2025, the highest level since Ipsos began tracking consumer confidence in Pakistan.

Punjab and middle-income groups are the most optimistic, with 40% of Punjabis expecting economic improvements. In contrast, only 17% of respondents in Baluchistan share this optimism.

The survey also highlights concerns about personal financial conditions, with 60% of Pakistanis expecting their financial situation to worsen in the next six months.

However, optimism about personal finances has been steadily increasing since August 2024, with 20% of respondents now feeling positive about their financial future.

Confidence in making major investments remains low, with 86% of Pakistanis stating they do not feel confident about investing in the future.

However, confidence in saving for retirement or children’s education has increased by 30% over the past year.

Job security is another area of concern, with 80% of respondents feeling insecure about their jobs. Only 19% feel confident about job security, though this marks the highest level since Ipsos began tracking this metric.

Pakistan’s Global Consumer Confidence Index (GCCI) has seen a positive change of 2.7 points over the past year, with improvements in all four sub-indices: Current Index, Expectations Index, Investment Index, and Jobs Index. Despite this progress, Pakistan remains below the global average and ranks above only Türkiye among similar countries.