A salesman sits on iron frames outside closed shops, during a shutter down strike called by the traders, against the hikes in power billings and taxes, during a protest in Karachi, Pakistan August 28, 2024.
REUTERS
Investment confidence wanes, with fewer Pakistanis feeling comfortable making major purchases
Job security confidence reaches a three-year high, with three out of five Pakistanis feeling secure in their jobs
According to the latest Consumer Confidence Index survey conducted by Ipsos Pakistan, only 11% of Pakistanis believe the country is headed in the right direction.
The survey, which gathered data from more than 1,000 adults nationwide between Aug. 15 and 20, reveals a stark decline in optimism, with rural populations showing slightly more hope than their urban counterparts.
The survey highlights a significant drop in confidence from 18% in the previous quarter to just 11% in the third quarter of 2024, marking a return to levels seen earlier this year.
COURTESY: IPSOS PAKISTAN
The decline comes amid growing concerns over economic conditions, particularly the rising costs of electricity and taxes, which are increasingly seen as the most pressing issues by the public.
Rural vs. urban sentiment
The data indicates that rural residents are more optimistic than those in urban areas, with 12% of rural respondents believing the country is on the right track, compared to just 8% in urban regions.
COURTESY: IPSOS PAKISTAN
This rural optimism, though still low, is overshadowed by the fact that 89% of respondents believe Pakistan is on the wrong track.
Economic concerns dominate
The survey reveals that economic problems continue to dominate Pakistanis' concerns. Rising electricity prices, inflation, and additional taxes are seen as the most worrisome issues.
COURTESY: IPSOS PAKISTAN
The burden of taxes has become particularly pronounced, with concerns reaching a four-year high. Despite some improvements in other areas, the perception of economic challenges has touched a two-year low, highlighting the severity of these issues in the public's mind.
COURTESY: IPSOS PAKISTAN
The outlook on the country’s economic condition has also worsened, with only 13% of respondents rating it as strong, a 4% decrease from the previous quarter.
COURTESY: IPSOS PAKISTAN
The survey also sheds light on the public's outlook for the future. Only 13% of Pakistanis rate the country's economic condition as strong, down 4% from the previous quarter.
COURTESY: IPSOS PAKISTAN
Purchasing power and job security
The percentage of Pakistanis who feel comfortable making daily purchases has dipped by 4 percentage points since the second quarter, reflecting growing economic uncertainty.
COURTESY: IPSOS PAKISTAN
COURTESY: IPSOS PAKISTAN
However, confidence in job security has reached a three-year high, with three out of five Pakistanis expressing confidence in their job stability, a rare positive note in an otherwise bleak economic landscape.
COURTESY: IPSOS PAKISTAN
Investment confidence declines
Confidence in making major purchases, such as homes or cars, has also decreased slightly, with 6% fewer Pakistanis feeling comfortable about such decisions compared to the previous quarter.
COURTESY: IPSOS PAKISTAN
This decline in investment confidence, along with a 5% drop in confidence about future savings, underscores the growing financial concerns among the population.
COURTESY: IPSOS PAKISTAN
Global comparisons
On a global scale, Pakistan's Consumer Confidence Index remains the lowest among comparable emerging markets, including Brazil, China, South Africa, Turkey, and India.
COURTESY: IPSOS PAKISTAN
The country's negative change of 2.4 points in the Global Consumer Confidence Index since the last quarter further highlights the challenging economic environment Pakistanis are facing.
COURTESY: IPSOS PAKISTAN
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