Pakistan: Karachi market sales plunge as inflation and political unrest squeeze retailers

Karachi [Pakistan], November 30, (ANI): Small traders and shopkeepers in Pakistan are deeply concerned as their sales have dropped by 70 per cent and continue to fall, driven by the economic instability caused by political unrest.
All Karachi Tajir Ittehad Chairman, Atiq Mir expressed serious concern over the declining sales, stating that markets and bazaars in Karachi have experienced a 70 per cent drop in sales compared to last year. He linked this downturn to several factors, including soaring food inflation, high energy tariffs, shrinking incomes, rising taxes, and widespread political and economic instability, Express Tribune reported.
On the other hand, e-commerce sales have been steadily increasing, driven by intense sales events like Blessed Friday, Big Friday, 11.11 sales, and others that offer substantial discounts for a limited time.
He expressed concern that 80 per cent of traders and shopkeepers can no longer afford electricity bills, worker salaries, or shop rents. At the same time, he criticized the government for celebrating a fabricated surge in the Pakistan Stock Exchange (PSX), taking on excessive debt, and presenting misleading economic data, while the actual economic conditions continue to worsen in Pakistan's financial hub.
Mir urged policymakers and the Pakistan Army to step in, requesting a reduction in energy tariffs, measures to control inflation, job creation, and immediate actions to resolve political and economic instability. He also called for tighter regulation of artificial price increases for essential items like meat, milk, fruits, and vegetables, as well as the elimination of corruption and inefficiencies within government departments.
Chairman of the Arambagh Markets Association, Asif Gulfam, commented, "Doing business in the current economic climate is extremely challenging, as uncertainty affects buyers, sellers, and investors--the key pillars of any business. Everyone is distressed and watching the country's worsening situation, holding on to hope for improvement."
He pointed out that, despite some scams, e-commerce is steadily gaining traction as more consumers turn to online shopping. Gulfam emphasized that more than 350 online stores in Saddar have their own delivery riders, ensuring prompt home delivery of products.
E-commerce is a well-established market in the West, where the holiday shopping season kicks off on the last Friday of November, with customers beginning to buy Christmas gifts. In Pakistan, online retail is highly competitive but operates differently from traditional markets. Consumers are increasingly seeking last-minute deals as retailers compete on price, timing, and delivery savings.
The report further stated that a spokesperson for Daraz explained that "11.11, originally known as Singles' Day in China and later becoming the world's largest shopping festival, was brought to Pakistan by Daraz in 2018. Since then, it has become our biggest sale of the year, offering discounts of up to 80 per cent on over 10 million products.
This year, more than one-third of all orders came from non-metro areas, highlighting how e-commerce is breaking down barriers." She further noted that consumers in smaller cities and rural areas now have access to products from sellers nationwide, which were previously unavailable to them. In a time when many are still feeling the effects of high costs, despite some relief from inflation, 11.11 offered an excellent chance for consumers to maximize their savings.
"Our goal is to make shopping more accessible, rewarding, and inclusive for all Pakistanis," she concluded. (ANI)