Amidst escalating economic hardships, a recent survey reveals a dual reality for Pakistanis: deepening pessimism about the nation’s economic trajectory, juxtaposed with an enduring pride in cultural and societal values. While the overwhelming majority grapple with soaring inflation and taxation, many still find solace in the country’s rich cultural heritage and the inherent kindness of its people.

A recent survey reveals that a deep sense of pessimism and despondency prevails among Pakistanis, despite purported economic ‘improvements.’ Conducted by Ipsos, the survey found that only one in ten Pakistanis believes the nation is on the right path. While this doesn’t necessarily imply that the rest hold an opposite view, it does highlight the widespread gloom among citizens, who are increasingly burdened by the surging cost of living due to steep inflation, soaring electricity rates, and hefty direct and indirect taxes.

Amidst growing economic pressures, the survey exposes a stark decline in national optimism, with just 10% of the population believing the country is heading in the right direction. The survey also points to a widening gap between rural and urban outlooks, with rural dwellers exhibiting slightly more hope than their urban counterparts. The survey presents a grim scenario, showing a sharp drop in optimism from 18% in the second quarter to a mere 11% in the third quarter, effectively negating any progress made earlier this year. Persistent economic difficulties continue to dominate public concerns, with a pronounced focus on rising electricity prices and an increasing tax burden.

Interestingly, while the perception of economic difficulties has slightly eased since the start of 2024, anxiety over electricity costs and taxes has surged to alarming heights. The report notes that worries about taxation have reached a four-year peak, reflecting widespread discontent. Only 13% of Pakistanis consider the nation’s economic condition strong, with optimism more prevalent among men, rural residents, post-graduates, and the upper class. However, even this modest confidence is waning, with a 4% drop in those who describe the economy as strong and a slight 1% increase in those who view it as weak.

Consumer confidence is also eroding, with 94% of respondents feeling less secure about making daily purchases—a decline of four percentage points from the previous quarter. This downturn in economic confidence has been ongoing since the beginning of 2024, now reaching its lowest point since November 2023.

Moreover, expectations for local economic improvement over the next six months have significantly diminished, with only one in ten Pakistanis anticipating positive changes—a threefold decrease from the optimism seen in early 2024. The third quarter also witnessed a 5% drop in confidence regarding future savings, reversing a year of steady growth.

On a brighter note, the survey sheds light on what Pakistanis hold most dear about their homeland. A significant majority (54%) identified their fellow citizens as the country’s greatest strength, valuing traits like hospitality, helpfulness, and respectfulness. Additionally, 42% of respondents expressed pride in Pakistan’s rich cultural diversity, while 35% admired the nation’s breathtaking landscapes. A third of those surveyed celebrated Pakistan’s culinary richness, with a particular fondness for local dishes such as biryani. As a Muslim-majority nation, 16% of respondents took pride in Pakistan’s Islamic identity, rooted in the country’s foundational values and ideology.

This survey highlights the intricate balance between economic hardship and cultural pride among Pakistanis, capturing both the growing challenges and the enduring strengths that define the nation. The survey findings reveal that optimism has “significantly decreased from 18% in the second quarter to 11% in the third quarter,” returning to levels observed earlier this year. The more pronounced pessimism among urban residents compared to their rural counterparts is understandable, given that taxes and rising electricity costs have disproportionately affected urban areas in recent years. Moreover, optimism regarding domestic economic conditions has plummeted nearly threefold since the first quarter, reaching a one-year low, with only 10% of Pakistanis hopeful for improvements in the next six months.

The survey underscores two key points: first, public confidence in the economy has waned despite the “recovery in macroeconomic fundamentals” over the past year; second, fewer people now believe that this ‘macro improvement’ will translate into better living conditions in the near future. This public sentiment largely reflects the declining quality of life for the middle class, which is struggling to navigate a highly inflationary environment. However, this perception mirrors the harsh economic reality of the country. The so-called macroeconomic stability touted by authorities is heavily reliant on timely financial support from multilateral institutions and debt relief from bilateral creditors.

Pakistan’s ongoing fiscal and current account issues have long constrained the nation’s growth potential to a maximum of 3-3.5%, far below the 7% minimum required to absorb new job market entrants, reduce inflation and interest rates, and provide disposable income to the middle class. Any attempt to push the economy beyond this ceiling invariably leads to further difficulties, necessitating emergency measures to suppress demand and borrow more for survival. Given these circumstances, it is difficult to fault people for losing faith in the economy. Only sustained structural reforms can restore public confidence.

The survey paints a complex picture of life in Pakistan, where economic woes are eroding public confidence despite claimed macroeconomic recoveries. Yet, in the face of these challenges, the enduring pride in cultural identity and societal values shines through. For Pakistan to truly restore faith in its future, sustained structural reforms are essential—not just to stabilize the economy, but to ensure that the improvements resonate in the daily lives of its citizens.