Pakistan's Small Traders Face Economic Turmoil as E-Commerce Booms Amid Crisis

Small traders in Pakistan are grappling with a significant drop in sales due to economic instability, while e-commerce sees growth through major sales events. Business leaders urge action to stabilize the economy as concerns over energy costs, inflation, and political unrest persist.

In Pakistan, small traders and shopkeepers are facing a severe downturn, with sales plummeting by 70% amid economic instability fueled by political unrest. All Karachi Tajir Ittehad Chairman, Atiq Mir, expressed grave concern about the declining sales in markets and bazaars, attributing the drop to soaring food inflation, high energy tariffs, shrinking incomes, rising taxes, and persistent political and economic instability, according to the Express Tribune.

On a contrasting note, e-commerce sales have seen a steady rise, spurred by significant sales events like Blessed Friday, Big Friday, and 11.11, offering limited-time, tempting discounts. Mir conveyed his worry that a staggering 80% of traders can no longer afford essentials such as electricity bills, salaries, or shop rents. He also criticized the government's misleading portrayal of an economic uptick in the Pakistan Stock Exchange and excessive debt, as Pakistan's financial hub continues to face escalating economic challenges.

Mir called upon policymakers and the Pakistan Army to intervene, demanding cuts in energy tariffs, inflation control, job creation, and immediate measures to resolve the ongoing political and economic instability. He stressed the need for regulation of artificial price hikes in essential goods and the eradication of corruption within government departments. Meanwhile, Asif Gulfam, Chairman of the Arambagh Markets Association, highlighted the challenges faced by businesses amid the current economic scenario, with uncertainty affecting all stakeholders.

Despite concerns over scams, Gulfam noted the growing traction of e-commerce, with more than 350 online stores in Saddar ensuring prompt deliveries. E-commerce, well-established in the West, is witnessing a surge in Pakistan as well, with retailers competing on price, timing, and delivery savings. A spokesperson for Daraz detailed the significance of the 11.11 event, highlighting its success and how it bridges the gap between urban and rural buyers, providing access to national products and delivering significant savings during times of high costs.

(With inputs from agencies.)