New Delhi, Jan 3 (NationPress) Small traders throughout Pakistan have labeled 2025 as one of the most challenging years in the nation's economic landscape, citing a surge in business interruptions, escalating unemployment, and profound financial challenges.

A report by the All Karachi Traders Alliance (AKTA), referenced by 'The Express Tribune', indicates that the economy has been mired in stagnation due to ongoing political turbulence and an absence of a definitive economic strategy.

The findings reveal that general commercial operations remained under 60 percent for the majority of the year, resulting in the closure of numerous small and medium enterprises.

Atiq Mir, President of AKTA, termed 2025 a “year of closures,” asserting that thousands of traders were compelled to cease operations, which directly led to job losses and increased pressure on household budgets.

The traders' association noted that investor confidence was severely undermined throughout the year, with both domestic and foreign investors withdrawing their funds from the country.

The report highlighted that instability regarding economic policies and frequent changes in regulations discouraged new investments and prompted capital to relocate overseas.

AKTA also pointed out the detrimental effects of soaring inflation on ordinary citizens, stating that life became increasingly challenging for impoverished and middle-class families.

Despite the government's repeated assertions that the economy was stabilizing and that Pakistan had averted default, traders contended that these claims did not accurately reflect the actual situation.

The report criticized authorities for relying on “artificial indicators” rather than offering substantial support to trade and industry.

Furthermore, it condemned the government for failing to achieve tangible outcomes despite over 35 foreign trips aimed at attracting investment.

According to AKTA, these missions failed to yield significant economic advantages, while local investors continued to shift their resources abroad due to ongoing uncertainty and mistrust.

Key factors contributing to the economic downturn included increasing taxes, high electricity and gas costs, rising fuel prices, and rampant inflation.

Basic necessities like flour, pulses, milk, and vegetables reportedly became unaffordable for numerous families, exacerbating public hardship.

The report also noted that markets remained largely vacant even during peak shopping periods.

In various sectors, over half the workforce reportedly lost their jobs, with many businesses struggling to meet salary and rent obligations.

Karachi was characterized in the report as a city “under siege,” suffering from extortion, lawlessness, encroachments, and ineffective governance.

AKTA accused the Sindh government of inadequate governance and claimed that price-control agencies failed to combat profiteering, leaving consumers vulnerable.