SUMMARY of the Article “Economic Pessimism,” Dawn, September 1st, 2024

The article discusses the widespread pessimism among Pakistanis regarding the country’s economic situation, despite recent claims of improvements in macroeconomic indicators. A recent Ipsos survey highlights that only 10% of Pakistanis believe the country is headed in the right direction, a sharp decline in optimism from previous quarters. The pervasive gloom is largely driven by the soaring cost of living, especially due to high inflation, rising electricity prices, and heavy taxation, which have severely affected the middle class, particularly in urban areas. The survey findings reveal a significant drop in optimism, with only 10% of respondents hopeful for improvements in the next six months, a stark contrast to earlier in the year. The article points out that public confidence in the economy has declined even though there has been some recovery in macroeconomic fundamentals. However, this so-called recovery has not translated into better living conditions for the majority, especially the struggling middle class. The macroeconomic stability cited by the authorities is fragile, reliant on external financial aid and debt relief, and unable to sustain growth beyond 3-3.5%, far below the 7% needed to create jobs, reduce inflation, and improve living » Read More…