Economic stability fails to reduce labor concerns

Pakistan closed 2025 with signs of economic stabilization, but the public remains divided on whether the recovery has translated into broad-based prosperity, according to a nationwide survey conducted by the Institute of Cost and Management Accountants of Pakistan (ICMA).

The survey, which captures the views of citizens, professionals, students and businesses, paints a mixed but cautiously optimistic picture for 2026, with governance, jobs and long-term reforms emerging as decisive factors for sustainable growth.

The survey shows that 54.3% of respondents recognized an improvement in the economy in 2025, pointing to easing inflation, higher remittances and a relatively more stable external position. These developments helped to get the country out of a phase of immediate crisis. However, the recovery was uneven, with 45.7% describing the year as turbulent, marked by highs and lows. Weak performance in agriculture and persistent fiscal pressures limited the benefits of stabilization for a large segment of the population. Only 10.3% said 2025 was much better than expected, while 12.1% believed the economy showed solid performance, underscoring that steady and inclusive growth remains elusive.

Looking ahead, public sentiment for 2026 reflects cautious optimism rather than strong confidence. The survey shows that 56.9% of respondents expect the economy to improve, while 43.1% believe it will remain stable. Among this group, 29.3% described the outlook as promising and 25% expect economic growth, mainly due to hopes for a recovery in industry, exports and domestic demand. However, only 2.6% see the economy as strong, highlighting that deep-seated structural weaknesses, low levels of investment and productivity challenges continue to weigh on the long-term outlook.

The survey also reveals that economic performance alone is not the public’s biggest concern for 2026. Political instability tops the list of concerns, cited by 33.6% of respondents, reflecting fears that policy uncertainty and leadership conflicts could derail fragile gains. Youth unemployment follows closely behind at 29.3%, signaling the urgency of translating macroeconomic stability into job creation for a rapidly growing workforce. High inflation, although subsiding, is still a concern for 26.7% of respondents, while extreme weather and climate-related risks were seen as a relatively distant concern by 10.3%.

The respondents sent a strong message about what Pakistan needs to stop doing to ensure sustainable progress. According to the survey, 31% called for an end to the repetition of failed policies and short-term fixes that have historically failed to deliver lasting growth. Political conflict was identified by 28.4% as a major obstacle that creates uncertainty and weakens investor confidence. Another 26.7% emphasized reducing dependence on foreign loans, urging a shift toward self-reliance through higher domestic revenues and stronger exports. The neglect of public services such as health and education was also highlighted as an issue that needs to be addressed to improve social and economic outcomes.

When it came to priorities for 2026, the public overwhelmingly put people before physical projects. An impressive 84% of respondents stressed that job creation and human development should take priority over major infrastructure initiatives. Against this backdrop, 45.7% called for urgent action to create jobs, while 37.9% highlighted education and skills development as critical to tackling youth unemployment and creating a competitive workforce. Infrastructure and health care were still seen as important, but respondents saw them as secondary to creating widespread opportunity and improving human capital.

On the external front, the survey highlights a pragmatic approach to international partnerships. China emerged as the most important partner for 2026, cited by 44.8% of respondents for its role in investment, infrastructure development and projects related to the China-Pakistan Economic Corridor (CPEC). Neighboring countries followed with 26.7%, reflecting the importance of regional peace and trade. Gulf countries were identified by 18.1% for their contribution through jobs and remittances, while 10.3% pointed to the United States for technology and education ties. Overall, respondents emphasized that foreign relations should be driven by tangible economic benefits rather than symbolic alliances.

The survey also reflects a growing sense of individual responsibility in shaping economic outcomes. More than half of respondents, 56.9%, said they plan to learn new digital skills in 2026 to adapt to a technology-based economy. Another 25% expressed an intention to start a business or project, emphasizing entrepreneurial ambition, while mentoring and volunteering were considered secondary priorities.

According to ICMA, the findings highlight a clear public mandate: governance reform, job creation and efficient public services matter more to citizens than major projects. With 62.9% calling for effective public service delivery, the message for policymakers is that 2026 will be judged not just by economic indicators, but by whether stability translates into better daily lives for ordinary Pakistanis.