Consumer confidence in Pakistan has fallen sharply as households struggle with rising prices and job insecurity, according to the latest joint report by Dun & Bradstreet Pakistan and Gallup Pakistan. The Consumer Confidence Index (CCI) dropped to 86.4 in the first quarter of FY2025-26, down from 96.2 in the previous quarter showing a 10.2% decrease.
Despite this decline, the index still stands 18.5% higher year-on-year, indicating that overall sentiment is better than it was a year ago.
The report shows weakening confidence across all four key areas: household finances, the national economy, unemployment, and savings. Current confidence fell from 88 to 74.7, while future expectations slid from 104.3 to 98.2, revealing cautious optimism rather than complete pessimism.
Inflation remains the biggest worry for most Pakistanis. About 84% of respondents said prices of essential items continue to rise. Unemployment also remains a serious concern, with a high net indicator score of 56.5, reflecting broad job market stress. Public perception of the country’s economic condition also declined from 100.8 to 92.5, and fewer people expect noticeable improvement in the next six months.
Still, many households are holding onto hope. Around 62% believe their personal financial situation will stay stable or improve soon.
Gallup Pakistan Executive Director Bilal I. Gilani said the drop in confidence shows that inflation and weak job conditions continue to trouble people. “Stability has helped, but without real economic growth, confidence won’t rise much further. People want to see jobs and income grow before they fully trust in a recovery,” he noted.
Dun & Bradstreet Pakistan’s Chief Business Officer Zubair Qureshi added that the index remains an important measure for businesses. He said that despite short-term challenges, the resilience in household financial expectations shows companies can still plan and align strategies with changing consumer needs.
