The surge in COVID cases and the implementation of smart lockdowns and banning business activities by the government to curb its spread have further deteriorated consumer confidence in the country.

In the first quarter of 2021, more than 52 percent of consumers believed that the unemployment rate would increase further in the next 6 months. The Consumer Confidence Index declined by 10.8pc on a quarterly basis to 80.8 points in the first quarter of 2021.

As per a joint survey report released by Dun & Brad Street Pakistan and Gallup Pakistan based on indicators of confidence of local consumers, the current situation also saw a 12pc drop in consumer expectations for the future, down from 8.3pc in the previous quarter.

The resumption of smart lockdown lead to the biggest disappointment in consumer sentiment over the country's economic situation, which declined by 16pc. The household financial situation was the only parameter during the first quarter of 2021 that managed to stay above 100 points.

According to the report, more than 52pc of consumers in the first quarter of 2021 believed that the unemployment rate would increase further in the next 6 months, compared to 39pc and 42pc of consumers in the third and fourth quarters of 2020, respectively. During the first quarter of 2021, 92pc of consumers thought that daily necessities became more and more expensive in the last six months.