Pakistan's traders brand 2025 a "year of economic collapse" as businesses struggle to survive

Islamabad [Pakistan], January 2 Small traders across Pakistan have declared 2025 one of the most disastrous years for Pakistan's economy, citing collapsing businesses, shrinking investment and worsening unemployment, according to a report issued by the All Karachi Traders Alliance (AKTA). The assessment paints a bleak picture of an economy trapped in stagnation amid political instability and policy paralysis, as reported by The Express Tribune.

According to The Express Tribune, the report states that commercial activity remained below 60 per cent throughout the year, with widespread shutdowns of small and medium enterprises across the country. Describing 2025 as a "year of closures," AKTA President Atiq Mir said thousands of traders were forced out of business, triggering a sharp rise in joblessness and deepening financial stress for working families.

Investor confidence, the report noted, was badly shaken, while capital continued to flow out of the country.

According to the traders' body, persistent inflation made survival increasingly difficult for the poor and middle classes. Despite repeated official claims of economic stabilisation and avoidance of default, the report argued that trade and industry were left unprotected. It criticised the government for failing to deliver meaningful relief while relying on "artificial indicators" to project economic stability.

The report further noted that more than 35 foreign trips undertaken by government officials in the name of attracting investment produced no tangible results. Instead, domestic investors continued shifting capital abroad amid uncertainty and policy inconsistency. Excessive taxation, soaring electricity and gas prices, rising fuel costs and unchecked inflation were identified as major contributors to the economic downturn.

Essential goods such as flour, pulses, milk and vegetables reportedly moved beyond the reach of ordinary citizens. At the same time, markets remained largely deserted even during peak shopping seasons, as cited by The Express Tribune.

According to the report, over 50 per cent of workers in some sectors lost their jobs, and many businesses struggled to pay wages and rents. Karachi was described as a city "under siege," plagued by extortion, lawlessness, encroachments and administrative failure. The AKTA accused the Sindh government of poor governance and alleged that price-control bodies colluded with profiteers instead of protecting consumers, as reported by The Express Tribune.

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