Only 11% of Pakistanis feel optimistic about future: Survey

September 02, 2024 (MLN): Despite some improvements in the economy, overall optimism has fallen to levels seen at the start of 2024, with only 11% of Pakistanis believing the country is moving in the right direction, an international survey conducted by Ipsos shows.

Since the beginning of 2024, optimism regarding local economic and conditions has dropped significantly. Currently, only 1 in 10 Pakistanis anticipate improvements in the next six months.

While the economy remains the dominant worry, concerns about the rising electricity prices and the burden of taxes have become significantly more pronounced, with concern about taxes reaching a 4-year high.

Moreover, according to the Ipsos Pakistan Consumer Confidence Index Survey - Quarter 3 2024, the percentage of Pakistanis who feel comfortable making daily purchases has dipped by 4 percentage points since Q2.

In a positive turn, confidence in job security has reached a three-year peak, with a substantial 3 out of 5 Pakistanis now expressing confidence in their job security.

Ipsos Global Consumer Confidence Index (GCCI) is a national survey of consumer at titudes on the current and future state of the local economy, personal financial situation, as well as confidence to make large investments and ability to save.

Consumer sentiment is a key predictor of purchase trends in the market. Despite it being a lagging indicator, if consumer confidence is high, people will make more purchases and the economy will expand.

Businesses and Policy Makers can monitor changes in the index to factor the data in their decision-making processes.

A wave-on-wave decreasing trend suggests consumers have a negative outlook on their ability to spend.

Thus, manufacturers may expect consumers to avoid retail purchases, particularly items that require financing.

Likewise, banks can anticipate a decrease in lending activity, mortgage applications, and credit card usage.

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