January 18, 2008	Friday	Muharram 08, 1429

KARACHI, Jan 17: The overall sale of various items has fallen by 80 per cent as scared buyers are avoiding visiting markets and shopping centres, following killing of over a dozen people in Landhi’s industrial zone, and another blast in Peshawar near an Imambargah on Thursday evening.

Local markets had already been facing depressed sales after the Oct 18 blasts in Karachi, and subsequent incidents.

Consumers’ passion for buying and visiting markets has rather shattered following the assassination of PPP chairperson Benazir Bhutto on Dec 27, 2007, said a trader.

Despite the fact that sale of shoes, garments, etc., during the first 10 days of Muharram remains at the lowest ebb owing to end of marriage season, but people even are not making advance purchases for marriages.

Market players are not very much optimistic about recovery in their sales, and buyers’ return to markets unless elections are held peacefully and a stable democratic government assumes charge.

In the evening, when shopping actually kicks off after 5pm, people are more interested in returning to their homes from their workplaces, and there is rather a thin arrival of consumers in main markets.

People are preferring purchasing various items in their nearby markets rather than visiting main shopping centres and bazaars.

Due to non-availability of any authentic sales data and reluctance of retailers and shopkeepers in giving actual sales receipts, there can be a wild guess of sales only.

Siddiq Memon, president, Tariq Road Traders Action Committee, said that people are scared after the Peshawar incident and markets were portraying a deserted look on Thursday evening.

He said after the failure of government to provide security to the business community, the Tariq Road traders have decided to install double iron gates at entry and exit points of the shopping centres and malls.

Traders have also decided to manage security on their own for which they would have to bear an additional burden of Rs3,000, he further said.

“They are also considering insuring their shops since the government has virtually failed to provide any security.”

He claimed that some 1,200 workers had been fired from their jobs at various shops in Tariq Road during the last three months after the declining sales.

Although rangers are providing security to markets, the traders feel that it was inadequate, as they have witnessed loot and plunder as well arson after any tragic incident, he said.

Demand of goods has been sluggish as buyers are opting only for required items, rather than making extra purchases, Siddiq said.

As long as political uncertainty remains there, markets would continue to witness below normal sales activities, he added.

Chairman, Karachi Wholesale Grocers Association (KWGA), Anis Majeed, said there had hardly been a 20 per cent lifting of commodities by retailers, especially during the last days of Muharram.

Irrespective of higher prices during 2007, the uncertain political and law and order situation, followed by various deadly incidents have created an uncertain condition in the wholesale markets.

Retailers may turn up to lift commodities when buyers would make a pre-election purchase, may be in fear of any unhealthy situation before the Feb 18 elections, he said.

He, however, said importers were placing few orders with foreign suppliers because pulses rates in international markets have been higher, followed by losing strength of rupee against the dollar which was making imports costlier. He said foreign suppliers have changing attitudes.

He added that one supplier who quoted $820 per ton rate on Wednesday for masur, increased it to $835 per ton later.

He said transporters are demanding 50 per cent more fare from wholesalers for transfer of essential goods after damages to a large number of vehicles on Dec 27.

Director, Bonanza Garments, Hanif Bilwani, said sales have declined by 50 per cent after the Eidul Fitr owing to buyers’ low turnout in markets after various incidents.

“Business prospects may continue to fall day-by-day and hopefully the political situation may improve by March this year,” he said.

General Secretary of Karachi Retail Grocers Group (KRGG), Mohammad Farid Qureishi, said sales have declined 50 per cent after the Eidul Fitr as consumers are more interested in purchasing necessary items only.

Even the buying of Muharram-related items is very low owing to fear among consumers about country’s political and economic future.

Only flour sales have been picking up, otherwise, sale of other items remained at the bottom.

Hopefully, sales will return to normalcy after the holding of elections, he said.

Chairman, Alliance of Market Associations (AMA), Atiq Mir, said that after the Quaidabad blast, there have hardly been 20 per cent buyers in markets, while sales had already been depressed 50 per cent after the Oct 18 blasts.