Survey shows worrying state of Pakistani economy, job market

A survey conducted by the Ipsos Global Consumer Confidence Index (GCCI) has shown concerns about the Pakistani economy, investment scenario and the job market.

The survey by the GCCI, a national survey of consumer attitudes on the current and future state of the local economy, personal financial situation, confidence to make larger investments and the ability to save, says a vast majority of the people who took part in the survey believes that Pakistan is heading in the wrong direction.

According to the survey, the number of people who were worried about the rising inflation has increased by 12 percent compared to the numbers in March 2021. The survey says that inflation, poverty and social inequality, unemployment, increase in power tariff and the burden off additional taxes have affected the people the most.

The survey says only 8% of Pakistanis rate the current state of economy as strong. Most people believe that the economy will remain weak in the next six months and there will be no improvement in their financial condition.

As many as 86 percent of Pakistanis are less secure about their job compared to the last year. As many as 50 of Pakistanis say they personally know some who has lost the job in recent months.

Here are the key insights: 

1. Four in five respondents believe country heading in the wrong direction, situation has worsened by 7% in the past one year
2.  Unemployment and inflation are top issues concerning Pakistanis consistently since Aug’19, compared with march of 2021, 12% more respondents reportedly worried about inflation
3. Only 8% Pakistanis rate the current state of economy as ‘strong’. Those who decisively call it ‘weak’ have increased by 14 percentage points in the last one year
4. Similarly, 1 in 2 foresee it remaining weak in next 6 months
5. Also, only 8% Pakistanis rate their current financial situation ‘strong’, those who decisively call it ‘weak’ have increased by 15 percentage points in the last one year
6. Similarly, more than half expect their financial situation to be even weaker in upcoming 6 months
7. Reflecting last one year, 86% Pakistanis are less confident about job security as compared to one year ago
8. 50% Pakistanis claimed to personally know someone who lost their job as a result of economic conditions, situation was slightly better an year ago
9. 84% Pakistanis are not confident about their ability to invest in future, 85% are not confident to make a major purchase and 85% are less comfortable in making household purchases
10. Compared with the same month last year, Pakistan Consumers’ Confidence Index has gone down by only 8.3 points, which is the lowest among similar emerging markets