Public confidence improves with Pakistan’s economic stabilization

February 06, 2026 (MLN): Public sentiment in Pakistan showed notable improvement in 2025, with citizens expressing cautious optimism about the country’s economic and social outlook.

Around 31% of Pakistanis reported that living standards were improving, more than double the 15% recorded in 2023, according to Khurram Schehzad

Similarly, optimism about the local economy rose sharply, with 25% of respondents saying the economy had improved in 2025, up from 12% in 2024.

The positive shift attribute to significant macroeconomic stabilization, including a drop in inflation from approximately 40% in May 2023 to below 6%, a stronger Pakistani rupee, and rising foreign exchange reserves.

Leadership approval rose to 36%, marked the highest level since 2020. Public perceptions of corruption, while still a concern, declined from the record highs of 2023.

Many still believe that corruption remains widespread in both government and business sectors.

The overall wellbeing of Pakistanis improved, with 25% now classified as “thriving” compared to 19% “suffering,” reversing the record-low wellbeing levels seen in 2024.

This improvement in wellbeing was consistent across gender, age, income, and urban-rural demographics, signaled a broad-based recovery in public morale.

Despite these positive developments, the sustaining this momentum will require continued economic stability, effective governance, and inclusive growth policies.

Khurram Schehzad emphasized that while the public mood is “cautiously improving” after years of economic crisis, political uncertainty, and natural disasters.

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