Researches reveal that consumer confidence in Pakistan has been increased to a great extent by improvements in political stability and security situations in recent years and their spending is expected to increase further in 2018. According to the McKinsey 2018 Global Sentiment Survey, 54 percent of Pakistani consumers altered their consumer purchasing habits to save (while) 29 percent of consumers look to purchase their preferred brands/products at stores with lower prices in the country. McKinsey survey also reveals that spreading over September 2015 to September 2017, gleaned information from 4,007 respondents in Pakistan, UAE, Saudi Arab and Egypt as well. Having drawn its findings from in-person interviews with 1,000 respondents from major regions in Pakistan, the New York-based consultancy firm stated that Pakistani consumers are usually brand loyal if they find the right price.
|INFLATION IN PAKISTAN (Base 2007-08)|
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We also know that consumers are the largest economic group, affecting and affected by almost every private and public economic decision and even it is said that consumers are the assets of the business or they are king also. Pakistani consumer is habitually price-sensitive owing to their general low income; however household wealth has been increasing steadily in present years (6.3 percent between 2016 and 2017 – Credit Suisse Global Wealth Report) and the bourgeoning middle class is among the top 20 in the Globe.
Pakistan Bureau of Statistics (PBS) mentioned in a statement that per capita income during FY2017 is Rs 162,230 ($ 1,641) based on provisional statistics of population census 2017 held during March 2017, i. e 207,774,520. By the grace of God, Pakistan’s strategic location offered it the ideal foundation to become a premier trade, energy and transport corridor of Asia. It is said over 60 percent of the population fell within the working age bracket of 15 to 59 years. A large population together with rapid economic growth means Pakistan is developing into a major consumer market. Pakistan was ranked 29th internationally in terms of market size by the World Economic Forum (WEF) in 2016.
Economic managers of Pakistan calculated that during the occasion of Eid-ul-Fitr in 2018, the consumer spending has increased approximately 15 percent, breaking the Rs 1 trillion trajectory; as heatwaves was the biggest challenge for the consumers in Pakistan. Ministry of Finance also calculated that during FY2018, per capita income grew by 0.5 percent to $1,641.
According to the Nielsen Global Survey of consumer confidence and spending intentions, Pakistan is flourishing and is rated as one of the top growth markets in the Middle East & Africa region. Pakistan’s consumer confidence has recorded an all-time high of 111, up by 9 points in 3rd quarter-2017 (July-September), from 102 points in the previous quarter 2017 (April-June). The survey statistics highlight an optimistic perception of job viewpoint, growing from 47 percent in 2nd quarter to 57 percent in 3rd quarter. Although it was predicted that there has been a one percentage point dip in job security being the biggest concern over the upcoming months, it still remains the top concern amongst 21 percent of Pakistani consumers.
Consumers are spending more on vacations and technology in 3rd quarter, suggesting that they have more disposable cash. Furthermore, regionally, there has been a one-point rise in the index level. Middle East/Africa has also posted a one percentage point rise in the job prospects (38%), with no change in the state of respondent’s personal finances. Spending intentions rose one percentage point to 34 percent. Four out of six Africa/Middle East markets explained consumer confidence gains. Pakistan’s consumer confidence raised the most, by 9 points (which stands at 111). UAE (112), South Africa (83) and Egypt (81) were amongst the other countries explaining a rise in consumer confidence index. Conversely, consumer confidence declined in Morocco (72) and Saudi Arabia (93), falling by 5 points in both countries.
More recently, consumer confidence index in Pakistan declined to 47.61 index points in May from 48.32 index points in March of 2018. Consumer Confidence in Pakistan averaged 42.07 index points from 2012 until 2018, standing 51.08 index points in March of 2017 and a registered low of 29.05 index points in May of 2012.
The Competition Commission of Pakistan (CCP) is an independent quasi-regulatory, quasi-judicial body that prohibits abuse of a dominant position in the market, certain types of anti-competitive agreements, and deceptive market practices. CCP also reviews mergers of undertakings that could result in a significant lessening of competition. Combined with its advocacy attempts, the CCP seeks to promote voluntary compliance and develop a competition culture in Pakistan’s economy.
No doubt, consumer protection laws are one of the most significant tools in western states to defend consumers and offer them protection by law against criminal handling of industry. In Pakistan consumer has no right at all against the fake industry mafia. Fake products are being sold in the markets, people purchase in trust but later they can’t go anywhere to find and sue those criminals. We mostly all are consumers and must put massive pressure on government to bring urgent consumer protection laws in our country.