Small traders have declared calendar year 2025 as one of the worst years in Pakistan’s history in terms of business activity, investment, unemployment and inflation, citing prolonged political instability and economic uncertainty.
According to traders, commercial activity during 2025 remained below 60 percent, while uncertainty about the future eroded investor confidence in local markets. They said no significant new commercial or industrial units were established during the year, further worsening unemployment.
A report compiled by Atiq Mir, head of the All Karachi Traders Alliance, described 2025 as a “year of closures,” stating that the shutdown of numerous industries and businesses led to a sharp rise in joblessness. The report also highlighted an increasing trend of capital flight, with investors moving funds abroad amid deteriorating economic conditions.
Traders said persistently high and unbearable inflation turned 2025 into a nightmare for low- and middle-income groups. They claimed that while the government asserted it had saved the country from default, it failed to prevent the collapse of the trade and industrial sectors.
The report criticised the performance of public sector institutions, calling it the worst in years. It said the government undertook 35 foreign visits in the name of attracting foreign investment but failed to secure meaningful inflows, while domestic capital continued to leave the country.
According to the traders’ body, no serious or credible strategy was visible to pull the country out of the economic crisis, and there was little hope of relief or improvement even in 2026.
The report further said excessive taxation, soaring electricity, gas and fuel prices, a weakening rupee and unchecked artificial price hikes pushed the economy deeper into decline. Essential commodities moved out of reach for low- and middle-income households, while traditional shopping seasons failed to revive market activity.
Traders also accused the government of relying on what they termed misleading economic indicators instead of taking concrete steps to control inflation and revive the economy. They said that while the stock market touched record highs, ground-level trade and business activity remained at historic lows.
Speaking on the issue, Atiq Mir said prices of essential items such as pulses, cooking oil, milk, meat and vegetables continued to rise daily. He described Karachi, the country’s economic hub, as increasingly controlled by mafias, alleging that traders and industrialists faced extortion threats.
He said the city’s population of over 40 million continued to suffer from rampant inflation, unemployment, encroachments, illegal land occupation, traffic chaos, water shortages, lawlessness and severe shortcomings in municipal services.