Pakistan: Sales drop in Karachi market due to economic instability caused by political unrest
Pakistan: Due to economic uncertainty brought on by political turbulence, small businessmen and shopkeepers in Pakistan are very worried since their sales have decreased by 70% and are still declining.
Atiq Mir, the chairman of All Karachi Tajir Ittehad, voiced grave concerns about the falling sales, claiming that Karachi’s marketplaces and bazaars had seen a 70% decrease in sales from the previous year. According to Express Tribune, he attributed this decline to a number of causes, such as skyrocketing food prices, high energy tariffs, declining earnings, increased taxes, and general political and economic unrest.
However, because to strong sales events like Blessed Friday, Big Friday, 11.11 deals, and others that provide significant discounts for a short period of time, e-commerce sales have been rising quickly.
Eighty percent of dealers and retailers, he said, are now unable to pay their power bills, employee wages, or store leases. He also chastised the administration for providing false economic statistics, taking on enormous debt, and celebrating a fake spike in the Pakistan Stock Exchange (PSX) as the real economic situation in Pakistan’s financial center continues to deteriorate.
Mir called on the Pakistan Army and politicians to intervene, asking for urgent steps to address political and economic instability, a drop in energy costs, and measures to manage inflation and create jobs. In addition, he demanded that corruption and inefficiency in government agencies be eradicated, and that artificial price hikes for necessities like meat, milk, fruits, and vegetables be strictly regulated.
“Doing business in the current economic climate is extremely challenging, as uncertainty affects buyers, sellers, and investors—the key pillars of any business,” said Asif Gulfam, chairman of the Arambagh Markets Association. Everyone is upset and hoping for better as they see the nation’s circumstances deteriorate.
He said that as more people purchase online, e-commerce is gradually growing in popularity, even in spite of certain frauds. Gulfam underlined that over 350 Saddar-based online retailers have their own delivery drivers, guaranteeing timely product delivery to homes.
In the West, where the holiday shopping season begins on the final Friday of November, e-commerce is a well-established business where consumers start purchasing Christmas presents. Online retail is very competitive in Pakistan, yet it functions differently than conventional marketplaces. As merchants compete on price, speed, and delivery savings, consumers are increasingly looking for last-minute offers.
According to the story, a Daraz representative went on to say that “Daraz introduced 11.11, which was first known as Singles’ Day in China and subsequently became the biggest shopping festival in the world, to Pakistan in 2018.” Since then, it has grown to be our largest sale of the year, with up to 80% off on more than 10 million items.
Over one-third of all orders this year came from non-metropolitan regions, demonstrating how e-commerce is removing boundaries. She said that previously inaccessible items from merchants throughout the country are now available to customers in smaller towns and rural locations. 11.11 provided a great opportunity for consumers to optimize their savings at a time when many are still experiencing the consequences of rising expenditures, albeit with some respite from inflation.
“Our goal is to make shopping more accessible, rewarding, and inclusive for all Pakistanis,” she said.
