Pakistan Inflation Becomes a Top Priority
September 08, 2021
Unemployment and inflation remain the most concerning issues for Pakistanis, with a majority of citizens expecting the economy to remain weak in the next six months, according to a new opinion poll. However, people’s confidence appears to be improving slightly after reaching new lows in the last two years, despite the fact that the majority of people surveyed still witnessed bad financial conditions and had poor outcomes for improvement.
The only positive finding in the new IPSOS survey – the global market research and Consultancy Company was compared to June of this year, the percentage of naysayers fell slightly in September. According to the survey findings, consumers are still less confident and hesitant to make investment decisions and three out of every four people are less confident in their ability to save money by investing in their future. People were polled on their economic confidence, their assessment of the current situation in comparison to a year ago, investment decisions, job prospects, and the most concerning issues for them. This month, the survey was conducted. Inflation was the most concerning issue for the vast majority of respondents (73 percent), while unemployment was the most concerning issue for more than two-thirds of those polled.
According to IPSOS, the economy was weak for the remaining 37% of respondents. According to the majority of respondents, 43 percent, the economy will remain weak in the next six months. The survey results came a day after Finance Minister Shaukat Tarin stated that the economy was heading in the right direction, despite the fact that the nature of the minister’s meetings suggested otherwise. Pakistan’s economic conditions have remained precarious for many years, and they have worsened in the last three years. The survey findings also confirmed that people’s personal financial situations did not improve significantly.
IPSOS research findings are based on primary data collected from a nationally representative sample of 1,100 people. The sample size is more than double that of the World Bank and World Economic Forum’s global surveys. An overwhelming majority of Pakistanis (74%) are still concerned about their job security. However, for the first time in the last two years, approximately 26% of Pakistanis are now confident in their job security, up from 15% to 18% in the previous two years.
Over one-third of those polled said they had seen themselves or people they knew lose their jobs in the previous year. A year ago, the situation was even worse. Furthermore, three-fourths of Pakistanis are now less confident in their ability to save money and invest for the future. However, 26 percent of Pakistanis are more at ease, the highest level since 2019. In comparison to a year ago, nearly 80% of Pakistanis are less confident about purchasing major items such as cars, homes, and so on. In June 2020, this figure was 97 percent.
The alarmingly high proportion of less confident people refutes the government’s claims that people’s purchasing power had increased and they could now afford the luxury of vacationing in hilly areas. Similarly, 78 percent of Pakistanis are less at ease when shopping for other household items. Overall, the Pakistan Consumer Confidence Index rose nine points over the previous year, approaching its highest level of 38.8 since 2019. However, it was more than 14 points lower than India’s index level and 33 points lower than the global average.