Karachi’s Eid Sales Plunge Amid Inflation and Financial Struggles

Many shopkeepers had stocked up on goods using borrowed capital, expecting a boost in sales during Eid.

By DTD- On Apr 2, 2025

KARACHI: Karachi’s business community has expressed deep disappointment over this year’s Eid sales, marking the third consecutive year of sluggish sales activity. According to the All Karachi Traders’ Alliance, shopkeepers struggled to sell nearly 60% of their stock, resulting in significant financial losses.

Ateeq Mir, president of the All Karachi Traders’ Alliance, revealed that approximately 40,000 shopkeepers across 200 markets had invested Rs40 billion in goods ahead of Eid-ul-Fitr. However, sales only amounted to Rs15 billion, leaving Rs25 billion worth of merchandise unsold and piling up in warehouses.

Mir attributed the weak sales to high inflation, reduced purchasing power, and worsening law and order conditions, all of which led to dampened consumer spending during the festive season. Compared to last year, sales were down by 25%, further exacerbating financial woes for traders.

Many shopkeepers had stocked up on goods using borrowed capital, expecting a boost in sales during Eid. With a large portion of stock unsold, traders now face difficulties in repaying their dues. Mir lamented that inflation and limited income had deprived the poor of enjoying the Eid festivities, forcing many families to cut back on their spending.

In response to the business community’s concerns, Prime Minister Shehbaz Sharif is scheduled to meet top business leaders on Thursday. The meeting will focus on recent reductions in electricity prices and provide an opportunity for the government to brief the business community on power sector reforms and efforts to lower electricity costs. Sources have confirmed that the International Monetary Fund (IMF) has approved a reduction of Re1 per unit in electricity tariffs, with further discussions ongoing to explore the possibility of more significant cuts.

This meeting aims to ease the financial burden on businesses and consumers and provide much-needed relief amidst challenging economic conditions.