FinMin welcomes public confidence surge in latest survey

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Sunday hailed the latest IPSOS Consumer Confidence Survey results as a strong signal of Pakistan’s improving economic outlook and rising public trust.

In a statement issued by the Finance Ministry, it was noted that consumer confidence has risen significantly, with 42% of Pakistanis now expressing the belief that the country is headed in the right direction.

Aurangzeb credited this shift in sentiment to the government’s coordinated and responsible economic policies, pointing to key steps such as curbing inflation and strengthening fiscal discipline as the foundation for renewed public confidence.

Aurangzeb noted that consumer confidence has increased, particularly in areas of large-scale purchases and investment, suggesting that households feel more secure about their financial outlook.

He further highlighted that confidence regarding job security has reached its highest level since 2019.

Meanwhile, the government has projected a resurgence in inflationary trends, forecasting an average CPI-based inflation rate of up to 7.5% for the 2025–26 budget, a notable increase from the 5% recorded in the current fiscal year, according to The News.

The Ministry of Planning cautioned that the external sector could come under strain, as the relaxation of import restrictions and upcoming debt repayments are expected to widen the current account deficit in the upcoming budget.

The Annual Plan Coordination Committee (APCC), scheduled to meet on June 2, 2025, is all set to consider recommending the overall macroeconomic framework for the upcoming budget, including envisaging GDP growth rate of 4.2% for the next budget against 2.68% for the outgoing financial year.

These macroeconomic projections show that the stabilisation mode would continue in the coming fiscal year under the tight noose of the International Monetary Fund (IMF).

According to the government’s prescriptions, public investment is projected to increase from 2.9% to 3.2%. Similarly, private investment is also projected to rise from 9.1% of GDP to 9.8%.