Four out of 10 Pakistanis believe the country is moving in the right direction, reflecting a significant improvement in public sentiment since the current government assumed office, according to the Consumer Confidence Index report for the first quarter of 2026. The survey, conducted by market research firm Ipsos, gathered responses from more than 1,000 individuals nationwide and highlights gradual shifts in economic perception over the past two years.
Confidence in the country’s overall direction has climbed from 12% to 40% since the first quarter of 2024, marking more than a threefold increase. The highest level of optimism was recorded soon after the Pakistan-India conflict, when national sentiment peaked. The current figure, while slightly below that high point, still reflects sustained improvement compared to early 2024 levels.
Optimism is notably stronger among men, individuals from upper-, lower- and middle-income brackets, rural residents and people living in Punjab. Nearly half of male respondents indicated that the country is on the right track, while sentiment among women remains comparatively lower. Regional differences also persist, with Punjab recording the strongest positive outlook.
Economic concerns continue to dominate public discourse, yet their intensity has declined across all major indicators since the first quarter of 2024. Inflation, poverty and unemployment remain the most pressing issues, but the proportion of respondents identifying these as critical worries has fallen significantly over the past two years.
When asked about the current state of the economy, one in four Pakistanis described it as strong. This perception is led by men, younger respondents, residents of Punjab and Sindh, and affluent groups. The share of those viewing the economy as strong has surged from just 4% in early 2024 to 23% in the latest survey wave, representing a sixfold increase and nearing the highest level recorded by Ipsos.
Consumer behavior indicators reveal incremental gains in spending confidence. Approximately 12% of respondents said they feel comfortable making household purchases, with higher comfort levels among youth, urban residents, affluent segments and individuals in Punjab. This marks a threefold increase from 4% two years ago, suggesting steady, though modest, improvement during the government’s tenure.
Looking ahead, one in three Pakistanis expects the economy to strengthen over the coming months. Optimism regarding economic prospects is highest among youth, rural populations, and individuals in both upper- and lower-income groups, particularly in Punjab. These forward-looking expectations align with broader sentiment trends that have gradually improved since 2024.
Personal financial outlook has also edged upward. Around 40% of respondents anticipate an improvement in their personal financial situation, up from 35% in the first quarter of 2024. This level is close to a record high, indicating sustained positive sentiment among key demographic groups. Younger individuals, men, Punjab residents and those in upper- and middle-income categories display the strongest financial optimism.
Confidence in making major purchases remains limited but shows signs of recovery. Comfort levels have risen from 2% to 5% over the past two years, signaling modest gains in consumer readiness for larger expenditures.
Overall, the Q1 2026 Consumer Confidence Index suggests that while structural economic challenges persist, public sentiment has improved markedly compared to the uncertainty that defined early 2024. The upward movement in key perception indicators reflects cautious but measurable shifts in how Pakistanis view both the national economy and their personal financial trajectories.
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