KARACHI, Nov 15: Retailers of various items said on Thursday that overall sales have declined by 50 to 60 per cent while commodity wholesalers claim that lifting of goods by retailers and even customers has fallen by 25 per cent after the October 18 carnage in Karachi, followed by imposition of emergency on Nov 3.
They, however, seem highly optimistic about the return of political and economic calm by February 2008 depending upon the takeover of country’s affairs by a new stable government after holding of peaceful elections.
They said sales which were yet to recover after the Oct 18 carnage further plunged after emergency rule, thus shaking the sentiments of local investors who have put on hold their future investment plans.
Demand of goods has been sluggish for the last one month as buyers opt for only required items rather than making extra purchases. However, rising prices of essential commodities have further hit the consumers.
The markets will continue to witness below the normal sales activities as long as political and economic uncertainty looms large.
It is hard to present a real fall in sales in the absence of any authentic data on sales figures maintained by the government. Traders and wholesalers have provided their wild estimates of falling sales after October 18 in view of buyers’ rush in markets.
Chairman, Karachi Wholesale Grocers Association (KWGA), Anis Majeed, said lifting of items by retailers has fallen by 25 per cent after Oct 18 bloodshed as retailers have restricted their buying to specific quantities.
They are shaky in putting up extra investment in piling up extra stocks. Even people other than retailers have adopted wait and see attitude.
“Sales in the wholesale markets may remain below normal till elections are held peacefully, coupled with the lifting of emergency,” he said.
Arrival of imported essential items has been going on, but traders are not placing orders of larger quantities because of uncertain situation, amid fears of costlier imports after 22 paisa rupee devaluation against the dollar, he added.
One of the factors of rupee devaluation was hectic buying of dollar by importers on fear of its further fall.
General Secretary, Karachi Retail Grocers Group (KRGG), Mohammad Farid Qureishi, said sales have been 50 per cent lower after Oct 18 as consumers are more interested in purchasing necessary items. Hopefully, sales will pick up after the holding of elections.
President, Karachi Chamber of Commerce and Industry (KCCI), Shamim Ahmed Shamsi, said local investors have held back their future investment plans till the restoration of economic normalcy after elections.
Only those investors are putting up their money at stakes who will have to meet urgent requirement on day to day basis or under some compulsion, he said. Overall the sales in the markets have been depressed during the last one month, he added.
“I think political and economic stability in the country will return after Muharram next year. Much will depend on investment and economic policies of the new elected government,” Shamim said.
Siddiq Memon, a garment retailer on Tariq Road claimed 60 per cent plunge in business activities in the last one month.
Chairman, Karachi Electronic and Small Traders Association (KESTA), Mohamamd Rizwan, said only those customers are arriving in the markets who are purchasing marriage related items for dowry purpose. However, presence of general customers has slowed down by 50 per cent after October 18 as they are hoping for political tranquility in the country.
Chairman, Alliance of Market Association (AMA), Atiq Mir, said that only seasonal items (like winter shopping) and marriage related sales have been going on normally while there has been a 60 per cent fall in the presence of those whose living standards have improved in the last few years.
