Only 1 in 10 Pakistanis believes that country is headed in the right direction: IPSOS Survey

ISLAMABAD, Nov 23 (SABAH): According to the results of IPSOS Global Consumer Confidence Index (GCCI) survey, only 1 in 10 Pakistanis believes that country is headed in the right direction. Males are 4 times more likely to be more optimistic than females.

According to the results of the survey, albeit quite bleak even now, optimism is 6 times higher than Q3 when caretaker government took over. Ever growing pessimism has been reversed after couple of years

Economic problems continue to top the list of worrying issues for Pakistanis. However, a significant decrease can be seen in the perception of electricity prices as the most worrying issue since Q3 ‘23.

Economic challenges have had dominated for Pakistanis since last many years. Though meager 5% Pakistanis consider its economy as ‘Strong’ but in Q4, 16% more Pakistanis have changed their ‘weak’ economy perceptions as compared to Q3. Females, urbanite and Mature age groups are now even more positive.

Pakistanis calling country’s current state of economy as ‘weak’ has decreased significantly from 76% to 60% in this quarter, showing a welcome change of 16% in comparison to Q3.

1 in 3, and 1 in 4 Pakistanis expect their personal financial and economic situation in their areas getting better in next 6 months.

Again, only 1 in 10 Pakistanis are more confident about future saving and investment, but that optimism got double within last one quarter. Respondents from middle income group are seen most optimistic on these accounts.

After a continuous decline for year and a half in confidence of Pakistanis to invest in future, first time there is an increase of 4% in this quarter. Confidence in job security has jacked up twice as much Q3 levels, though acute majority (88%) remain less confident.

5 out of 10 Pakistanis claim to personally know someone who lost their job as a result of economic conditions. In comparison to Q3, 7% decrease in such claim shows increased job stability in Q4.

According to the survey, 9 out of 10 Pakistanis are not comfortable in making household purchases, however 3% Pakistanis are more comfortable in household purchases in comparison to last quarter.

Despite the improvements in this quarter, 98% Pakistanis are still not comfortable to make major purchase like home or car.

IPSOS Global Consumer Confidence Index (GCCI) is a national survey of consumer attitudes 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.

Turkey has the highest net change in Global Consumer Confidence Index (GCCI) followed by Pakistan with Significant increase of 5.0 Points in the Index Pakistan score remains lowest among comparative emerging markets but shows some signs of recovery.