According to the latest Consumer Confidence Index by IPSOS, a Paris-based surveyor, inflation remains the primary concern for households across Pakistan, with 69% of respondents identifying it as their top worry.
Pakistan’s headline inflation slowed to 4.9% year-on-year in November 2024, a significant drop from 7.2% in October. Despite the inflation rate dropping to a six-year low, 65% of respondents believe the country’s economic conditions remain fragile.
The Pakistan Bureau of Statistics (PBS) attributed the inflation slowdown to a high base effect and reduced prices of non-perishable goods.
However, 93% of respondents said they still feel uncomfortable making household purchases, with only 4% expressing confidence in making major purchases during the July-October period.
The survey found unemployment and increasing poverty to be the second and third most troubling issues, with the rising tax burden ranking fifth. While economic concerns have eased in 2024, the number of people citing inflation as their biggest issue declined by 16% compared to the previous year.
IPSOS reported that 79% of respondents believe Pakistan is heading in the wrong direction, with only 19% feeling optimistic about the country’s trajectory—an improvement from 11% in the previous quarter. Optimism remains low among women, with only 14% seeing the country on the right track compared to 23% of men.
Job security remains a major concern for 85% of respondents, as growth in large-scale manufacturing continues to lag.
Perceptions of economic strength were also mixed, with one in three Pakistanis viewing the economy as strong or moderate, while two-thirds described it as weak. Among postgraduate respondents, 85% said the economy is in poor condition.
The survey revealed that only one in four respondents expect economic improvement in the next six months. Confidence in financial conditions remains low, with just 20% foreseeing improvements, though pessimism about financial conditions dropped from 67% to 58%.
IPSOS noted some signs of external sector stability, including a low current account deficit, improved exports, and remittances, as well as a stable exchange rate. However, Pakistan’s deputy prime minister commented that the rupee’s value remains artificially high and should not exceed Rs240.
