Economic Stability Improves Public Sentiment in Pakistan: Survey

Survey points to cautious recovery after prolonged political and financial strain

Tue Feb 03 2026
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Key Points

• 31% report improving living standards, up from 15% in 2023
• 25% say local economy is strengthening, more than double 2024 level
• Inflation drops below 6% after peaking near 40% in 2023
• Leadership approval rises to 36%, highest since 2020
• One in four adults, now classified as “thriving,” placing Pakistan above South Asian average

ISLAMABAD: Public sentiment in Pakistan improved in 2025 following years of political instability and economic stress, according to findings from a Gallup World Poll survey that point to rising optimism alongside macroeconomic stabilisation.

About 31 per cent of Pakistanis reported that their living standards were improving, a sharp increase from 15 per cent in 2023.

In parallel, 25 per cent said the local economy was improving gradually, more than double the 12 per cent recorded in 2024, indicating a notable rise in economic confidence.

The shift in public outlook coincided with progress on key economic indicators. Inflation, which had surged to nearly 40 per cent in May 2023 during a severe cost-of-living crisis, fell to below 6 per cent.

The national currency strengthened and foreign exchange reserves increased, helping restore a degree of financial stability after a prolonged period of volatility.

Leadership approval climbed to 36 per cent in 2025, marking a 14-percentage-point increase from the previous year and the highest level since 2020.

Although overall dissatisfaction persists, the rise suggests broader public receptivity to policy direction amid signs of recovery.

Economic

Perceptions of widespread corruption also eased from earlier record highs, reinforcing official narratives about governance improvements and institutional accountability.

Well-being indicators registered one of the most significant gains. The survey found that 25 per cent of adults are now classified as “thriving,” compared with 19 per cent considered “suffering.”

The shift places Pakistan above the South Asian average for the first time since 2018, reflecting strengthening social resilience and an upward trajectory in life evaluations.

Analysts say the combination of stabilising prices, improved financial buffers, and gradually strengthening consumer sentiment could enhance investor confidence and support sustainable growth if the momentum is maintained.

Rising perceptions of better living conditions are also expected to encourage domestic consumption and reinforce market confidence, both of which are critical for a durable recovery in a country that has faced repeated economic shocks in recent years.

The survey’s findings suggest that even incremental macroeconomic improvements can translate into tangible shifts in public outlook, offering policymakers greater space to pursue structural reforms as optimism cautiously returns.

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