Islamabad: In Q4 2025, Ipsos Consumer Confidence Index for Pakistan shows a return to post Pakistan-India conflict levels, as economic pressures such as inflation and cautious spending persist. However, there is an unprecedented rise in personal financial optimism, particularly among young Pakistanis, suggesting potential resilience despite broader uncertainty.
While overall confidence has plateaued since the post-conflict surge, this rare optimism provides an opportunity for policymakers to leverage through clear communication and targeted strategies. Young Pakistanis' positive outlook is especially noteworthy and presents a valuable avenue for sustaining economic confidence.
After reaching an all-time high in Q2 following the Pak-India conflict, the perception that the country is headed in the right direction has returned to pre-conflict levels, which was still higher than previous 4-5 years.
Country Direction: 3 in 10 Pakistanis believe the country is on the right track, with optimism higher among men, upper class, rural residents, and in Punjab.
Most worrying issues: Inflation continues to be the foremost concern for Pakistanis, with a 6% resurgence in its significance from the previous quarter indicating that people are once again feeling the strain.
Current State of Economy: Only 18% Pakistanis believe the country's economic condition is strong, with confidence higher among men, youth and the affluent.
Current State of Economy: The perception of a strong economy has slightly increased from the last quarter but remains low compared to the post-conflict surge and is only at pre-conflict levels, albeit still higher since many years.
Household Purchases: 9 in 10 Pakistanis don't feel comfortable with household purchases, while men, urban and KPK residents are slightly more comfortable.
Expectations from Economy: 1 in 3 Pakistanis expect the economy to strengthen over the next six months, with optimism highest among youth, women, rural residents, and upper and middle-income groups. Sindh is the most pessimistic province in this regard.
Personal Financial Situation: Around 2 in 5 Pakistanis now expect their personal financial conditions to improve in the next six months, with optimism highest among Pakistani Youth, women, and the upper and middle classes.
Confidence in Job Security: About 2 in 10 Pakistanis feel secure in their jobs, with confidence highest among youth, middle- to uppermiddle income groups, men, and residents of Punjab and KPK
Confidence in job security has risen to 22%, marking its highest level since we began tracking Consumer Confidence, with the exception of the 30% recorded during the optimism surge following the Pakistan-India conflict.