Inflation erodes shopping in metro

Small traders term 2024 'year of economic turmoil'

KARACHI:

The traditional hustle and bustle in shopping centers, malls and markets was absent throughout the year, said a representative body of traders and retailers.

Be it Ramazan, Eid, or the wedding season in winters, the shopping seasons remained lackluster in term of sales. Small traders in the metropolitan city have termed 2024 the most challenging year in the country's history due to "economic turmoil" and "skyrocketing inflation."

In a statement issued on New Year's eve, Chairman of the All Karachi Tajir Ittehad Atiq Mir said on Tuesday that trade activities dwindled to just 30% of their normal levels, reflecting an eroded investor confidence, capital flight, and a general economic slowdown.

He described 2024 as a year marked by political instability, runaway inflation, and a debilitating economic downturn. He attributed the crises to flawed policies, heavy taxation, and the government's inability to curb artificial inflation, leaving little hope for improvement in 2025.

Mir particularly referred to surging prices of electricity, gas, fuel, which pushed the economy into a continuous state of decline. The escalating cost of living has made basic necessities unaffordable for the poor and the middle class, transforming markets into hubs of despair rather than centres of activity.

"Households were stretched beyond their limits," he said. "Even during sale seasons, the usual hustle and bustle in shopping centres was missing as purchasing power eroded." Nearly 80% of traders struggled to meet their expenses, with many turning to debt to stay afloat, Mir said while citing a report. Over 40% of employees were laid off as factories shut down, and several businesses failed to cover wages, rents, and utility bills. The economic downturn fueled alarming increases in unemployment and crime. "Faced with terrible joblessness, many abandoned their tools and turned to crime," said Mir. "Street crime and lawlessness surged as desperation gripped the city."