Despite the disturbing situation in Balochistan and parts of Khyber Pakhtunkhwa (KP), a surge in brutal terrorist attacks, and severe economic strains on households amid a volatile global landscape, Pakistanis remain resolute in celebrating Eid, refusing to let adversity dampen their spirit — for the most part.
Though most cities and markets report typical pre-Eid activity, Balochistan stands apart, unfortunately. A pervasive sense of fear and anger has cast a shadow over society and markets in Quetta and beyond. Unstable internet has further strained an already uncertain environment, disrupting online businesses. The deteriorating security situation has also led to a noticeable decline in women’s presence in malls and markets across the province.
Badruddin Kakar, a leader of the Quetta Chamber of Commerce and Industry, attributed Balochistan’s subdued Eid market to both overt and covert restrictions on border trade. “With limited industrial and agricultural activity, much of the province’s economy depends on cross-border trade with Afghanistan and Iran. Recent developments have nearly paralysed this sector, further weakening the economy and shrinking job opportunities for youth in an already disadvantaged province,” he said.
“People are buying what they deem necessary, but the usual Eid enthusiasm is missing, and understandably so,” he added.
As local markets in most parts of the country welcome varied foot traffic in preparation for Eidul Fitr, Balochistan’s disturbing situation has led to reduced pre-Eid activitiy
“There must be other factors behind the lower participation of women in Eid shopping in Balochistan. Mothers rarely shy away from risks when it comes to their children and the small joys they can afford,” a business leader from KP with family ties in Balochistan remarked, hinting at the gravity of the situation in the province.
Conversely, reports from KP, Sindh and Punjab indicate a higher footfall in bazaars this year compared to last, along with a surge in online orders for a wide range of Eid-related items. Sales so far have exceeded market expectations. Haji Nisar Gaddi, a traders’ leader with interest in the apparel industry, expressed optimism, stating, “The market situation isn’t just better than last year; it’s the best we’ve seen in three years.”
Muslims traditionally celebrate Eidul Fitr by wearing new clothes, organising special gatherings and feasts, giving cash gifts (Eidi), and visiting family and friends. While no systematic data or structured study exists on Pakistan’s Eid economy, estimates suggest it surpasses all other annual occasions in scale. Running into hundreds of billions of rupees, it also reflects the spending habits of low-income households, many of whom prioritise purchasing at least one new outfit for the occasion.
‘The market situation isn’t just better than last year; it’s the best we’ve seen in three years’
Officials from key government departments, including the Federal Board of Revenue, the Ministry of Planning, and the State Bank, and key members of the government’s economic team were approached for input. Their response was still awaited at the time of filing this report. Dr Naeem Zafar, Chief Statistician, Federal Bureau of Statistics, clarified in response to a query, “We do not conduct surveys to assess the Eid market or its performance.”
According to market observers, household Eid budgets in Pakistan typically range from 20 per cent to 40pc of monthly income, varying by social status besides other factors such as family size and age of members. In general, lower-income families allocate a higher proportion of their earnings to Eid expenses. Those with limited means often rely on support from relatives and well-wishers to meet their Eid needs.
Although precise item-wise percentages are unavailable, Eid budgets are generally allocated across garments, footwear, food, accessories, travel, and Eidi. Pakistan’s markets offer a wide range of options, catering well to families across all social segments.
In 2025, Eid coincided with the start of summer, blending seasonal shopping for fabric and apparel, especially among women, with Eid purchases.
Mehr Illahi, President, Tanzeem-e-Tajran KP, shared key insights on pre-Eid market activity in the province. He noted that while the first half of the holy month was relatively quiet, foot traffic has picked up after the 15th. “Markets popular with women are now seeing crowds almost as large as those of men. Despite concerns over law and order, Peshawar’s atmosphere remains free from fear, with families venturing out and a generally festive mood prevailing.”
Yousuf Jamshed, CEO of LXY, a retail sector analyst, remains optimistic as market data exceeds expectations. “Most brands have launched their summer collections, allowing consumers, especially women, to make the most of their budgets. This year, Eid and seasonal shopping are happening together. While larger purchases are a positive, early summer buying may impact later sales.
“After a tough winter for fashion and lifestyle, Eid has provided much-needed relief, with most brands matching last year’s sales, a significant boost. Business revival is offering hope.
“Lahore and Karachi lead in sales, with Lahore often outperforming. Other top-performing cities include Multan, Faisalabad, Peshawar, Bahawalpur, Sialkot and Islamabad.”
However, Atiq Mir, Chairman of the All Karachi Tajir Ittehad, found this year’s retail sales unsatisfactory. He attributes the decline to reduced disposable incomes, estimating that the market has shrunk by approximately 20pc.
Syed Akhtar Shahid, President of Hyderi Market Management in Karachi, echoed Mr Mir’s concerns. “Overall, business has declined compared to last year due to inflation, which has severely eroded the purchasing power of the average buyer. Meanwhile, wealthier customers are increasingly drawn to branded goods and online shopping, impacting local markets.”
A recent State Bank report highlights the growing shift toward a digital economy. According to the SBP’s First Quarterly Payment Review 2025, Pakistan has made significant strides in digitalising its payments ecosystem and expanding its infrastructure to support online transactions.
“Digital retail transactions increased by 8pc in volume, reaching 1.95 billion, totalling Rs136 trillion during the quarter. Digital channels processed 87pc (1.7bn) of all retail transactions, whereas over-the-counter channels accounted for the remaining 13pc (0.25bn),” the report states.
Published in Dawn, The Business and Finance Weekly, March 31st, 2025
from The Dawn News - Home https://ift.tt/G5XOjIP
Comments
Post a Comment