KARACHI: Women entrepreneurs in Pakistan’s commercial hub of Karachi say they are struggling through a subdued Eid shopping season as rising inflation dampens consumer spending and squeezes small businesses.
At the Gul Tijarah Shopping Mall (GTSM), a retail complex in Karachi, women traders say customer footfall has declined significantly while operating costs such as rent, inventory and transportation have increased, cutting festive sales by as much as 40% compared to last year.
The economic strain has deepened after Pakistan last week raised petrol and diesel prices by Rs55 per liter (about $0.20) as global oil prices surged following the conflict involving the United States, Israel and Iran. Petrol prices jumped to around Rs321 per liter, a rise of more than 20%, with officials warning the increase could push up transportation costs and the price of essential goods during the holy month of Ramadan and ahead of the Eid shopping season.
Economists say the surge in fuel costs is likely to add fresh pressure on household budgets and small businesses already grappling with rising food and utility bills.
“Compared to last year, about 60% of customers are coming while 40% are not,” Benazir Nawab, 27, who sells shoes, jewelry, gift items, toys, garments and home décor items, told Arab News when asked whether inflation was keeping customers away.
