ISLAMABAD: The results of the Ipsos Consumer Confidence Index Survey for the fourth quarter of 2023, released this month, show only one in 10 Pakistanis believe the South Asian country is “headed in the right direction.”
The South Asian nation is operating under a caretaker government after an IMF loan program, approved in July, helped avert a sovereign debt default. Ahead of the bailout agreement, Pakistan had to undertake a slew of measures demanded by the global lender, including revising its budget, a hike in its policy rate, and increases in electricity and natural gas prices.
Pakistan was facing an acute balance of payment crisis, with its foreign exchange reserves diminished to barely three weeks of controlled imports, along with historically high inflation and an unprecedented currency devaluation.
Under the bailout deal, the IMF also got Pakistan to raise $1.34 billion in new taxation to meet fiscal adjustments. The measures fueled all time high inflation of 38 percent year-on-year in May, the highest in Asia, which still is hovering above 30 percent.
“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,” Ipsos said in the survey results for Quarter 4. “Optimism is 6 times higher than Q3 when caretaker government took over. Ever growing pessimism has been reversed after couple of years.”
The survey said economic problems continued to top the list of worrying issues for Pakistanis.
“Pakistanis calling country’s current state of economy as ‘weak’ has decreased significantly from 76 percent to 60 percent in this quarter, showing a welcome change of 16 percent in comparison to Q3,” the survey said. “1 in 3, and 1 in 4 Pakistanis expect their personal financial and economic situation in their areas getting better in next 6 months.”
But only 1 in 10 Pakistanis were more confident about future savings and investment, thoug after a continuous decline for a year and a half in confidence of Pakistanis to invest in the future, for the first time an increase of 4 percent was seen in this quarter.
“Confidence in job security has jacked up twice as much Q3 levels, though acute majority (88 percent) remain less confident,” the survey revealed. “5 out of 10 Pakistanis claim to personally know someone who lost their job as a result of economic conditions.”
The survey said 98 percent Pakistanis were not comfortable making major purchase like houses or cars.
