A recent survey by Ipsos reveals a significant decline in public confidence in Pakistan's economic outlook and the country's direction, triggered by the US-Iran conflict. The survey, released on Wednesday, highlights growing concerns about inflation, unemployment, and household finances.
Key Findings of the Ipsos Survey
Confidence in the country's direction dropped to 22 percent, a sharp fall from a 40 percent peak earlier this year. This reversal brings sentiment back to levels seen during the COVID-19 period. The survey indicates that only about one in five Pakistanis believe the economy is strong.
Economic Anxieties Intensify
Economic anxieties have heightened across several indicators. Concerns about inflation, unemployment, and cost pressures have increased compared to the previous quarter. Personal financial optimism fell to 31 percent, down 9 percentage points, reflecting weaker sentiment and sensitivity to geopolitical shocks such as the US-Iran tensions.
Consumer Behavior and Job Security
Only 7 percent of respondents felt comfortable making household purchases, a drop of five percentage points from the previous quarter, matching COVID-19 era levels. Confidence in job security declined to 17 percent in the second quarter of 2026, after nearly doubling over the past two years. Confidence to invest remained low at 14 percent.
Future Expectations
Just 22 percent of respondents expect the economy to strengthen in the coming months, down nine percentage points from the previous survey. Optimism was relatively higher among men, younger respondents, rural residents, and those in Khyber Pakhtunkhwa and Balochistan.
The survey comes ahead of the federal budget announcement, amid government claims of economic stabilization and easing inflation.
