ISLAMABAD: Consumer confidence in Pakistan has risen by 4 percentage points from 31.5 to 35.5 over the last two years, which highlights improving public optimism under the government’s tenure, Ipsos market research firm said in a recent survey.

The survey was conducted through computer-assisted telephonic interviews (CATI) and included more than a thousand participants from all provinces and Azad Kashmir and Gilgit Baltistan regions on Feb. 2-14.

It comes at a time when Pakistan has undergone a difficult period of stabilization, though international rating agencies have acknowledged improvements after Islamabad began implementing structural reforms as part of its $7 billion International Monetary Fund (IMF) program.

The Ipsos survey revealed a “measurable” improvement in Pakistan’s economic sentiment, marked by a decline in inflation alongside notable reductions in poverty and unemployment, since the current government took charge two years ago.

“These findings point to a clear two-year transformation in the Consumer Confidence Index, demonstrating the perceived impact of consistent governance and policy measures,” read the key takeout in the survey.

“Sustained performance, coupled with transparent communication of achievements, will be essential to maintain momentum, reinforce optimism, and support further improvements in economic confidence.”

Four in 10 Pakistanis believed the country is on the right track, with optimism higher among men, while confidence in the country’s direction being right increased more than three times, from 12 percent to 40 percent, since the government came to power, according to the survey.

Economic concerns remained most worrying, but their quantum fell drastically across all issues since the first quarter of 2024. Inflation has dropped by 23 percent, unemployment by 10 percent, poverty by 20 percent, electricity prices by 34 percent and the burden of additional taxes was reduced by 18 percent in Q1 2026 as compared to Q1 2024.

“One in 3 Pakistanis expect the economy to strengthen,” the survey read. “Confidence to invest has grown steadily over two years, rising from 11 percent to 16 percent, with even stronger optimism among urban residents.”