Pakistan has seen a notable rise in public optimism, with 42% of respondents now believing the country is headed in the right direction, according to the Q2 2025 Ipsos Consumer Confidence Survey. This marks a significant improvement from just 31% in February 2025 and a dramatic turnaround from the low of 2% recorded in September 2023. The current optimism level is the highest in six years.
The surge in confidence has been observed across all provinces, including Gilgit-Baltistan and Azad Jammu and Kashmir, with both urban and rural populations reporting more positive outlooks.
Economic anxieties have lessened in recent months. Inflation concerns have dropped by 7 percentage points, while unemployment has become 4 points less prominent among the population’s top issues. However, apprehension about rising electricity costs and tax burdens has increased by 9 and 7 points respectively.
Perceptions of the national economy have improved, with 29% of Pakistanis now describing it as strong—the highest percentage since August 2019. Additionally, comfort in making household purchases has almost doubled over the past year, with 19% now expressing confidence in their buying ability.
Local economic optimism has also seen a dramatic shift, rising from just 12% in August 2024 to 37% in May 2025. For the first time since the survey began, optimism has surpassed pessimism regarding local economic conditions.
There is also growing positivity about personal financial futures, with 36% expecting improvement over the next six months—marking a notable increase compared to previous quarters. Meanwhile, confidence in job security has climbed to 30%, reaching its highest point since Ipsos began tracking this metric.
Pakistan registered a 4-point gain in the Global Consumer Confidence Index during the last quarter. While Brazil showed negative movement, Türkiye, South Africa, and Pakistan all recorded positive gains.
These encouraging trends suggest increasing confidence in Pakistan’s economic trajectory, strengthening its appeal to global investors as a stable and promising destination.
