Pakistan's 2025 "Year of Closures": Traders Warn of Deepening Economic Crisis

According to a report released by the All Karachi Traders Alliance (AKTA) and cited by 'The Express Tribune', the economy remained stuck in stagnation due to political instability and lack of clear economic direction.

The report said overall commercial activity stayed below 60 per cent for most of the year, leading to the shutdown of a large number of small and medium-sized businesses.

AKTA President Atiq Mir called 2025 a "year of closures," saying thousands of traders were forced to shut shop, which directly resulted in job losses and growing pressure on household incomes.

The traders' body said investor confidence was badly damaged during the year, with both local and foreign investors pulling money out of the country.

According to the report, uncertainty over economic policies and frequent changes in decisions discouraged fresh investment and pushed capital to move abroad.

AKTA also highlighted the impact of high inflation on ordinary people, saying life became increasingly difficult for the poor and middle classes.

While the government repeatedly claimed that the economy was stabilising and that Pakistan had avoided default, the traders argued that these claims did not reflect ground realities.

The report accused authorities of relying on "artificial indicators" instead of providing real support to trade and industry.

The report further criticised the government for failing to deliver results despite more than 35 foreign trips made by officials to attract investment.

According to AKTA, these visits did not bring meaningful economic benefits, while domestic investors continued to shift their capital overseas due to uncertainty and lack of trust.

Rising taxes, expensive electricity and gas, higher fuel prices and unchecked inflation were named as key reasons behind the economic slowdown.

Essential items such as flour, pulses, milk and vegetables reportedly became unaffordable for many families, increasing public hardship.

The report also noted that markets remained largely empty even during peak shopping seasons.

In some sectors, more than half of the workforce reportedly lost their jobs, while many businesses struggled to pay salaries and rent.

Karachi was described in the report as a city "under siege," affected by extortion, lawlessness, encroachments and weak administration.

AKTA accused the Sindh government of poor governance and alleged that price-control authorities failed to act against profiteers, leaving consumers unprotected.

- IANS