Winning over Pakistani consumers’ confidence

A report by the Nelson Global Survey of Consumer Confidence and Spending Intentions gives an all-time high to Pakistan mounting its points by nine points in July-September 2017. What factors in the positive outlook is the positive perception of job outlook, increasing from 47 per cent in the second quarter to 57pc in the third quarter. When compared to other regions, it is seen that North American consumer confidence remained on solid footing in the second quarter of 2017 with a score of 117, despite a decline of four points from the fourth quarter of 2016. Confidence in the Asia-Pacific region strengthened modestly, rising three points to 114. Confidence in Europe increased five points, and confidence held steady in Latin America with a score of 85, according to Nelson Pakistan website. 

The survey found that the respondents have positive views about the state of their personal finances had mounted by two percentage points from the second quarter to 66pc, resultantly immediate-spending intentions have reached 49pc, compared to 46pc in the second quarter 2017. It is obvious that political uncertainties, turmoil in the region because of the rise of militant outfits, such as Daesh, have not affected the people’s pockets. The main factor behind this positive outlook could be low POL prices the world over. An occasional increase in the prices because of OPEC intention to cut down the supplies has so far did not impact the market overall.   

The one bleak area in the survey report is a slight dip in job security. Yes, workplaces are a bit insecure in the country given polarization and ever-changing corporate world’s priorities. The survey found a one percentage point dip in job security that has been the biggest concern over the next six months, and it still remains the top concern amongst 21pc of Pakistani consumers. Several sectors, such as services and media, have seen job uncertainties. In media, there is the worst recession going on. Several media outlets have been delaying the salaries of their employers or have underpaid them because of rising costs and shortened revenues. The services sector, especially hospitality and medical, have also seen shrinking revenues resulting in job cuts.  

Domestic tourism, however, saw a sharp upward trend as people are more and more spending on vacations despite the Northern Areas hotspots have yet to be fully developed. Similarly, more recreational spots in Punjab, Sindh and Balochistan have not been developed and many worthy spots remain undiscovered. Technology, especially the telecom, also attracted more cash spending. But it only increased the import bills. “The nine-point upsurge in Pakistan’s consumer confidence score depicts an improving outlook for the country,” noted Quratulain Ibrahim, managing director, Nielsen Pakistan.

 “Since Nielsen launched the survey, this has been the highest number reached to date. We can attribute the score to many different reasons, such as the growth of our agricultural sector, controlled inflation, strengthened power supply and most importantly the uplift in our job market. There has been an increase in large-scale manufacturing —notably the automotive industry. Pakistan is flourishing and is rated as one of the top growth markets in the Middle East and Africa region.”