KARACHI: Small traders and business leaders have rejected government claims of declining inflation, calling official economic indicators “misleading and false.”
The declared 2025 one of the worst years in Pakistan’s economic history for the poor and middle class.
According to a report compiled by Atiq Mir, Chairman of the All Karachi Traders Alliance, commercial activity remained below 60 percent throughout 2025 due to political instability, economic uncertainty, and a sharp decline in investor confidence.
The report states that no significant new commercial or industrial units were established during the year.
The traders’ body described 2025 as a “year of closures,” noting that widespread shutdowns of industries and businesses led to a dramatic rise in unemployment. Capital flight accelerated, while soaring and “unbearable” inflation turned the year into a nightmare for low- and middle-income households.
Despite government claims of saving the country from default, the report argues that authorities failed to protect industry and trade from collapse. It further criticized the performance of public-sector institutions, calling it the worst in years.
The report highlighted that government officials undertook 35 foreign visits in the name of attracting investment, yet no tangible foreign investment materialized, while domestic capital continued to move abroad.
The traders’ alliance stated that no serious or effective strategy was visible to pull the country out of the economic crisis, adding that there is little hope for meaningful improvement even in 2026.
Excessive taxation, skyrocketing electricity, gas, fuel, and dollar prices, and the failure to control artificial inflation have pushed the economy into continuous decline, the report said.
Essential commodities have moved beyond the reach of ordinary citizens, while traditional sales seasons failed to generate expected market activity or consumer turnout.
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