ISLAMABAD: Public confidence in Pakistan’s economic prospects and the country’s overall direction fell sharply amid the recent US-Iran conflict, with concerns about inflation, unemployment and household finances resurfacing, according to a survey released by Ipsos on Wednesday.
Ipsos is a global market research and polling company that regularly tracks public sentiment and consumer confidence in Pakistan and around the world.
The release of its survey findings comes days before the federal government is due to unveil its budget for the coming fiscal year amid government claims of progress on economic stabilization and easing inflation.
“Confidence in the country’s direction falls to 22 percent, following a 40 percent peak earlier this year amid US-Iran tensions, indicating a rapid reversal of recent gains and returning to levels broadly comparable to the COVID-19 period,” the survey said.
Ipsos noted economic anxieties have intensified across several indicators, with concerns about inflation, unemployment and cost pressures increasing compared with the previous quarter, saying only around one in five Pakistanis believe the economy is strong.
“Personal financial optimism falls to 31 percent, down 9pp, amid weaker sentiment and continued sensitivity to geopolitical shocks such as US-Iran tensions,” it said.
The survey found that just 7 percent of respondents felt comfortable making household purchases, down five percentage points from the previous quarter and back to levels broadly comparable to the COVID-19 period.
Confidence in job security declined to 17 percent in the second quarter of 2026 after nearly doubling over the past two years, while confidence to invest remained low at 14 percent.
The survey also found that only 22 percent of respondents expected the economy to strengthen in the coming months, down nine percentage points from the previous survey.
Ipsos said optimism remained relatively higher among men, younger respondents, rural residents and people living in Khyber Pakhtunkhwa and Balochistan across several indicators.
