Business owners and traders in Pakistan are really struggling because of the recent increase in taxes and the huge rise in their electricity bills.
The recent tax increase and skyrocketing electricity bills have really hit traders and small businesses hard in Pakistan.
These extra costs are especially tough for small business owners who are already barely making ends meet.
For a lot of them, it’s a double whammy: they’re making less money right away and are at risk of not being able to keep their businesses going in the long run.
Take a small textile shop owner in Lahore, for example. His monthly electricity bill went up from PKR 20,000 to PKR 40,000.
On top of that, a new tax rule made him pay 15% more in taxes, which means he’s not only making less profit but also might have to let go of some of his workers to keep the business running.
This situation isn’t just happening to him; a lot of small business owners are telling similar stories, showing that this is a big problem for the trading community.
Recent surveys have shown that about 68% of small businesses have had to cut back on what they make and do.
Also, around 30% of these businesses might have to shut down if things don’t get better. These numbers are really worrying because they suggest that this could lead to more people losing their jobs and less activity in the market.
An estimated 50,000 jobs could be at risk as business owners figure out how to deal with these extra costs while still trying to stay in business.
These financial pressures aren’t just affecting individual businesses; they’re also messing with the whole market and economy.
When businesses can’t afford to operate, it means people are spending less, which could lead to slower economic growth. Businesses that can’t keep up might have to close, which could cause more people to lose their jobs and lead to more social problems.
With all these problems piling up, the traders’ group decided to join the national protest.
They’re trying to make the government see how unfair the financial situation is for small businesses and traders, asking them to rethink their tax policies and how they price electricity.
By coming together to speak out, they hope to get the government to make changes that can help the sector and make the economy more stable.