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Increase in Consumer Confidence Index

Increase in Consumer Confidence Index

According to reports prepared by international finance agencies and others, Pakistan has emerged as the third largest retail market in the world and its size of the middle class will cross the total population of various European nations. A consumer confidence survey suggests the consumers’ confidence on Pakistan’s economy has increased and a State Bank statement also claimed that the overall Consumer Confidence Index has increased by 5.07 percent as compared to the situation three months ago. Economists see improvement in consumer confidence on the basis of better economic conditions. The State Bank holds a survey after every two months to ascertain the current and future economic conditions, future trends in inflation, interest rates, unemployment, and household income. The bank deems monitoring and collection of information necessary to formulate monetary policies. Taking cue from the reports issued by the central bank, it is up to the policymakers to take proactive approach to streamline the economy. According to Bloomberg website, income of various groups have turned the nation into the world’s fastest growing retail market and it is expected to expand by 8.2 percent per annum till 2021. The size of the middle class population is also expected to surpass the total population of Britain, Italy and many other developed nations.

The security situation of the country is also improving, economy has been expanded and purchasing power of individuals has increased due to cheap prices of consumer goods. Almost two-third of the population is below the age of 30 and burgeoning youth and their freewheeling attitude toward rising income has been working as a driving force to push up the retail sector. Various foreign brands and products are entering Pakistan and the retail stores are expected to increase by 50 percent to one million outlets in five years through 2021. The country has signed free trade agreements with various nations and it is hoped the import of foreign goods will create a healthy competition of consumer goods in Pakistan. The industrial sector of the country will have to update itself in terms of business techniques and diversify products to stay and grow in the local and international markets. It is also necessary for the policymakers to look into the future possibilities and lead the nation to the right direction.