Pakistan consumer confidence dips, but youth remain upbeat

Consumer confidence in Pakistan cooled in the third quarter of 2025, sliding back to pre-conflict levels as inflation, unemployment, and poverty weighed heavily on public sentiment, according to a new Ipsos survey released Tuesday.

The 3Q Consumer Confidence Index (CCI) captures a shift from the brief surge of optimism that followed the Pakistan-India conflict in May. By mid-August, that boost had faded, bringing perceptions of the economy and country direction closer to where they stood earlier this year.

Economy seen as weak

Only about 16% of Pakistanis described the economy as strong, while nearly three in four said the country is headed in the wrong direction. Economic concerns dominated responses: 64% cited inflation and unemployment as their top worries, followed by poverty at 33%.

Ipsos noted, however, a slight reprieve in perceptions of electricity prices and extra taxes, with complaints dropping by six and eight percentage points, respectively, compared with the previous quarter. The firm suggested that targeted government communication efforts likely played a role.

Household and investment outlook under pressure

Everyday financial strain persisted. Just 12% of Pakistanis said they feel comfortable making household purchases, a seven-point drop from 2Q. Confidence in making big-ticket purchases such as cars or homes slipped to 15%.

Looking ahead, only 15% felt confident about investing or saving for retirement or education, down 11 points from the prior quarter.

Job security sentiment also weakened sharply: 19% said they feel secure in their jobs, compared with 30% earlier this year.

Youth drive financial optimism

Despite the overall gloom, personal financial optimism reached an all-time high. Nearly two in five Pakistanis expect their personal finances to improve in the next six months, with young people and the middle class driving the surge. Sindh residents were among the most optimistic.

Ipsos said this is a rare phenomenon since it began tracking confidence in 2018, and it presents a “platform for policymakers to capitalize on through effective measures and communication strategies”. While only 30% expect the broader economy to improve in the next six months, personal financial confidence is running ahead of national outlook.

Global ranking slips

Pakistan’s overall Global Consumer Confidence Index fell by 4.2 points to 19.4, keeping the country above Türkiye but well behind other comparable markets.

The survey was based on more than 1,000 telephone interviews conducted nationwide between Aug. 15 and 20.