Pakistan consumer confidence drops amid inflation and unemployment

Economic sentiment in Pakistan has declined sharply, with recent surveys indicating widespread pessimism regarding the country's financial stability. An Ipsos survey found that only 14% of Pakistanis view the economy as strong, a decrease from approximately 20% in the previous quarter. While optimism was slightly higher among urban, affluent, and male respondents, overall confidence remains fragile.

Data from the Consumer Confidence Index (CCI), conducted by Dun & Bradstreet Pakistan and Gallup Pakistan, shows a 24.4% plunge in consumer confidence during the third quarter of FY2026. The index fell from 86.4 to 65.3, marking one of the most significant single-cycle declines in recent years.

Inflation remains the primary driver of this pessimism, cited by 69% of Ipsos respondents and noted by 89.3% of CCI participants who reported rising costs for essential goods. Other major concerns include unemployment, poverty, and rising electricity prices. The CCI report noted that older consumers aged 50 and above experienced the steepest decline in confidence, falling by 30.4%.