A trader counts Pakistani rupee notes at a currency exchange stall in Peshawar, Pakistan, December 3, 2018. REUTERS
Consumer confidence in Pakistan fell sharply in the first quarter of fiscal year 2025-26, reflecting caution among households even as overall sentiment remains stronger than last year. The consumer confidence index fell to 86.4 of 96.2 In the previous quarter, a drop of 10.2%. Compared to the same period last year, when it stood at 72.9the index has risen 18.5%indicating that broader stabilization remains despite short-term fluctuations.
Pakistan Consumer Confidence Index (CCI) for the first quarter of fiscal year 2025-26, released in December 2025, provides a comprehensive assessment of household sentiment across the country. Prepared by D&B Pakistan in collaboration with Gallup Pakistan, the report captures perceptions of current economic conditions, future expectations, household finances, employment, savings and inflation.
Based on a telephone survey of 2,132 respondents with a margin of error of ±2.2%, the report highlights key changes in confidence compared to the previous quarter and the same period last year, offering an independent, data-driven pulse on consumer confidence in Pakistan.
The decline was driven by worsening current conditions. The current sentiment index fell to 74.7entering the extremely pessimistic range, while the future outlook index fell to 98.2 but remained close to neutrality. This suggests that households still expect some stability in the coming months.
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Consumer confidence reflects strong concern about rising prices, with 84.3% of people reporting that prices of everyday items have increased over the past six months, underscoring the ongoing impact of inflation. The net price indicator fell from 67.6 to 32.8 amid persistent inflationary pressures from fuel, energy and monetary weakness.
Consumers showed less confidence in the current employment situation, with the 56.5 net indicator which points to a general perception of tension in the labor market. Confidence in future job prospects also weakened, highlighting widespread concern about labor market conditions.
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Despite these challenges, households remain relatively optimistic about their finances. About 61.6% expect their financial situation to improve or remain unchanged, while the household net income indicator stood at 108.1with approximately 63% anticipate income growth or stability. Savings sentiment remained moderate with an overall net indicator of 81.3reflecting limited disposable income.
The steepest drops in trust were seen among urban residents and those aged 30 to 49, whose rates fell 24-27%. Younger respondents under the age of 30 were comparatively more optimistic, especially when it came to future income prospects.
