Daily Times

Recently, the Ipsos Pakistan Economy Survey has left many of us wondering about the status of our economy. The survey, which polled over 1,000 Pakistanis from all provinces including Islamabad Territory, Azad Jammu Kashmir and Gilgit Baltistan, paints a mixed picture of hope and concern. While there have been some encouraging indicators, there are still some significant challenges that need to be addressed.

One of the most startling findings of the survey is the increase in optimism among Pakistanis about the economy. For the first time in the last two years, the percentage of Pakistanis who think their country is headed on the right path has increased from 12 percent to 18 percent.

It seems that many people are not as concerned about inflation as they once were. The lowest number in the last three years indicates that only three out of ten Pakistanis currently consider inflation to be their top issue. Moreover, since the first quarter, the percentage of Pakistanis who characterise their nation’s economy as “strong” has increased fourfold, from 4 percent to 16 percent. Except for a brief peak in September 2021, this is the most optimistic attitude seen in the previous five years. This change in attitude is a key sign of how the public’s perceptions of the economy are evolving. Additionally, there has been a notable surge in consumer confidence when it comes to purchasing essential and everyday household expenditures. Since the first quarter of this year, the percentage of Pakistanis who feel comfortable making everyday purchases for their households has increased 2.5 times, from 4 percent to 10 percent. The nearly fourfold increase in individuals who feel safe making large purchases is even more startling.

It seems that many people are not as concerned about inflation as they once were.

A significant majority (62 percent) anticipated improvements in their financial circumstances and expected the local economy to improve during the next six months, which is a positive sign. This optimism is driven by the government’s efforts to stabilise the economy, improve the business environment, and increase foreign investment.

Since September 2023, there has been a consistent and steady increase in confidence in the ability to save for the future, with a rise from 11 percent to 15 percent. This steady increase indicates sustained financial planning among Pakistanis and indicates that a greater number of people are hopeful about their financial future. Additionally, from 12 percent to 15 percent in the preceding quarter, there has been a minor improvement in confidence in job security. This suggests a cautiously optimistic assessment of job stability.

Pakistan’s overall Consumer Confidence Index has changed by +0.8 points during the previous quarter as a consequence of positive movements in three of the four sub-indices. With an overall value of 32.3, this is the most potent forecast in the last three years and shows that consumer confidence is gradually but steadily rising. However, the survey also reveals some concerning trends. For instance, 71 percent of respondents believe that the cost of living has increased over the previous year, which is a major concern for many Pakistanis. A noteworthy finding from the study is that 55 percent of participants expressed concern over their financial stability, which is concerning considering the high rates of poverty and inequality in the nation.

According to this recent survey, there are indications of progress, yet there are still some significant issues that require attention. It indicates that more work needs to be done by the government to enhance business opportunities, draw in more foreign investments, and reduce poverty and inequality.

It also indicates to us that there is yet hope. The survey shows that the Pakistanis are prepared to cooperate to improve the country’s economy and are generally optimistic about it. It demonstrates that we are capable of overcoming obstacles and creating a better and brighter future for ourselves and the next generation. In recent news, multiple encouraging developments could affect the economy. A positive indicator for foreign investors is that the Pakistani Rupee has maintained its stability against the US dollar for another month. A 3.6 percent GDP growth target for FY25 has also been set by the government, which may aid in promoting economic expansion.

In conclusion, the Ipsos Pakistan Economy Survey, conducted for the second quarter of 2024, shows that opinions about Pakistan’s economy are becoming more positive in a cautious way, with improvements shown in several areas of the economy. There are still some challenges that require attention but I believe that if we are optimistic and cooperative, we can overcome these obstacles and create a brighter future for Pakistan.

The writer is a freelance columnist and can be reached at rakhshandamehtab@gmail.com