As Eid-ul-Fitr is round the corner, markets and shopping centres across the city have started seeing a huge rush of people, but very little sale.As usual, markets and shopping plazas have begun to witness an unusual rush. However, sky-rocketing inflation and political uncertainty have dampened the festive spirit in the city ahead of Eid, traders said, as their sales have plummeted even below those of coronavirus-hit days.
Traders said shopping activity had begun on a sluggish note, attributing slow sales to both the high inflation and continue squeezing purchase power of general public by increase in oil prices, gas and power tariffs by the government which adversely hit prices of all commodities including garment, shoes, cosmetics etc.Eid is usually the most inclusive holiday celebration in the country during which friends and families get together in their new attire and exchange gifts.
As the festival approaches, markets are typically crowded since people like to buy a range of products, including jewelry, clothes, and shoes.However, buyers and sellers have been experiencing a challenging season in Pakistan this year, as the country is currently undergoing an economic turmoil and experienced 35.4 percent inflation last month which was more than double on year-on-year basis.
“At the minimum, Eid sales have dropped by 40 percent this time as compared to the Eid season last year,” Kashif Chaudhry, president of Markazi Tanzeem-e-Tajran Pakistan, or Central Organization of Pakistani Traders.“High inflation is discouraging buyers to make their purchases while maintaining stocks has also become an issue this year since many manufacturers have been unable to honor their commitments and deliver orders on time due to import restrictions,” he added.
Pakistan has restricted imports to prevent the outflow of US dollars amid depleting foreign exchange reserves that currently stand at $4 billion. The restriction has created shortage of raw materials for industrial products. The ongoing war in Ukraine along with last year’s devastating floods and a stalled $7 billion International Monetary Fund bailout program have also exacerbated the economic crisis in the country.
Chaudhry said the people facing difficult economic circumstances were even struggling to meet their basic needs, such as food expenses and payment of utility bills, adding most of them were prioritizing purchasing of essential goods over clothing and other Eid-related items.
Most of the people are after cheap products with the price tag of about Rs2,500, he added. The AKTI chief estimated that in Karachi alone the value of the overall shopping would be around Rs20 billion which was lower than previous year’s Rs25 billion.
“Around 50 percent of Eid stock is still unsold,” he said, adding: “I have talked to traders and they say they are in huge trouble and worried about making payments to their workers.” Pakistani traders said most buyers this year were young people rather than elderly males who preferred to stay away from shopping.
