A new wave of Ipsos survey findings indicates that a majority of Pakistanis remain unconvinced about any near-term economic recovery, with 84% of respondents expressing low confidence in making investments over the next six months. The results underscore persistent uncertainty in household sentiment despite relative stabilization compared to the severe turbulence witnessed in early 2024.
According to the survey completed in February, only 23% of respondents believe the economy is strong, while 60% describe it as weak. Positive sentiment is largely concentrated in Punjab and among individuals around 30 years of age. Although the proportion describing the economy as strong is significantly higher than the 4% recorded in early 2024, when political and economic volatility was at its peak, the broader outlook remains fragile.
Expectations for improvement over the next six months remain muted. Only one in three Pakistanis sees potential for economic strengthening, and optimism has slipped by one percentage point compared to the November 2025 survey wave. The marginal decline suggests that many citizens did not perceive tangible improvement during the last quarter.
Personal financial optimism also edged down to 40%, one percentage point lower than in November 2025, though still better than the 35% level observed in 2024. Confidence in investment prospects has shown limited recovery over two years, rising gradually from 11% to 16%, yet remaining significantly below the 26% peak recorded after the Pakistan-India conflict, when national sentiment temporarily surged.
Consumer behavior indicators paint a cautious picture. Approximately 95% of respondents reported discomfort with making major purchases. Comfort levels improved slightly from 2% in 2024 to 5% in February, but this remains far below the 17% peak seen eight months ago. Only 12% expressed ease with household purchases, with confidence higher among youth, urban residents, affluent groups, and those living in Punjab. In contrast, among individuals aged 41 to 50, just 6% felt comfortable making purchases.
Employment sentiment is similarly subdued. Only 23% expressed confidence in job security, markedly below levels recorded during post-conflict optimism. Government data recently highlighted a pattern of jobless growth, a dynamic contributing to higher poverty and widening inequality. Planning ministry figures indicate poverty has reached its highest level in 11 years, income inequality has climbed to a 27-year high, and unemployment has hit a 21-year peak.
Perceptions about the country’s overall direction reveal mixed signals. Four in 10 Pakistanis believe the country is heading in the right direction, with optimism more pronounced among men, rural residents, upper-lower-middle income groups, and citizens in Punjab. Nearly half of male respondents viewed the trajectory positively, while sentiment among women remained considerably lower. Confidence in the national direction has risen from 12% when the current government assumed office to 40% now, although this is slightly below the 42% high reached shortly after the Pakistan-India conflict, indicating that earlier optimism has tapered off.
Economic pressures remain the dominant concern. Inflation tops the list of public worries, followed by unemployment and rising poverty. While Ipsos noted that overall concern levels across issues have moderated compared to 2024, the structural challenges persist. Foreign direct investment has declined despite a whole-of-government approach, falling over 41% to $981 million during the first seven months of the current fiscal year, according to central bank data.
The survey findings align with concerns raised by multinational firms during recent discussions with the International Monetary Fund, where business leaders emphasized the need for predictable and consistent economic policies. As macroeconomic indicators show stabilization in certain areas, public sentiment suggests that recovery has yet to translate into broad-based confidence at the household level.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.