Pakistani Public Confidence in Economy Remains Low Amid Inflation and Unemployment Concerns

ISLAMABAD: Public confidence in Pakistan’s economic situation remains at a low level, according to the latest **Ipsos Consumer Confidence Index survey for Q4 2025**, even as optimism about personal financial conditions has shown a noticeable increase.

The survey revealed that only **18% of Pakistanis consider the economy strong**, and just **one in five citizens** believes the country’s economic condition is improving. Similarly, only **16% of respondents** feel confident about investing in the future, with men, youth, and wealthier segments showing relatively higher confidence.

The Ipsos survey comes shortly after State Bank Governor **Jameel Ahmad** warned that the current economic growth model cannot sustain the country’s **250 million population**. Likewise, **Lieutenant General Sarfraz Ahmed**, Coordinator of the Strategic Investment Facilitation Council (SIFC), admitted that the country lacks a clear “growth plan.”

While the overall confidence index has improved slightly, it remains lower than the temporary spike observed after the recent **Pakistan-India tensions**, now returning to pre-conflict levels. The survey also highlighted that **89% of Pakistanis feel dissatisfied with household purchasing power**, although residents of **Khyber Pakhtunkhwa** are relatively more confident, with 18% expressing satisfaction compared to roughly 10% in other regions.

Ipsos Managing Director **Abdul Sattar Babar** noted that **inflation continues to be the public’s top concern**, with its importance rising by 6% compared to the previous quarter. Citizens also remain uncertain about making major purchases. On a positive note, **personal financial optimism has reached a historic high over the past two quarters**, particularly among young people.

Regarding the country’s direction, **one in three Pakistanis** believes Pakistan is heading in the right direction, with higher confidence seen among **residents of Punjab, rural areas, men, and affluent groups**. The surge in confidence observed after the Pakistan-India tensions has since returned to pre-conflict levels.

Looking ahead, **one in three Pakistanis expects the economy to strengthen over the next six months**, while **Sindh** remains the most pessimistic province. Nearly **half of respondents** are hopeful for improvement in their personal financial situation in the coming six months, and **22% feel their employment is secure**, indicating modest gains in job security perceptions.

The survey underscores that while personal financial optimism is rising, **broader public confidence in Pakistan’s economy remains fragile**, with inflation, unemployment, and regional disparities continuing to weigh heavily on public sentiment.