KARACHI: The Eid economy in Pakistan has shrunk by approximately 40% online and offline to around Rs432 billion in 2023, which is the lowest it has been in a decade.
According to a report published today, in 2018, spending on the holy occasion hit a record high when the Eid economy crossed the trillion mark, reaching Rs1.1 trillion. However, the expenditure has been on a decline in the subsequent years due to economic slowdowns and other factors.
In 2021, the economy dropped to less than half of its highest mark, clocking in at Rs480bn amidst lockdowns, sanctions on social gatherings and Covid fears.
The Eid market saw a resurgence in 2022, possibly due to pent-up demand from two pandemic-ridden years. However, this was still at the same level as almost a decade ago when an informal exercise of household spending valued the Eid economy at Rs700bn in 2013.
Unfortunately, hyperinflation, massive layoffs, suspensions and shutdowns, pay cuts and an uncertain future have taken their toll on the Eid economy in 2023.
The official data on remittance inflows, pre-Eid bank withdrawals and the volume of new currency notes disbursed in Ramazan will arrive with a lag, making it difficult to predict the true impact of these factors on the Eid economy. Nevertheless, the current situation suggests a difficult year for the marketeers and the Eid economy in Pakistan
