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Pakistan's Eid ul Azha Economy Worth $3.5 Billion

Pakistanis are spending about $3.5 billion on Eid ul Azha this year, according to analysts. This includes $2.8 billion worth of livestock and another $700 million on clothes,  shoes, jewelry and various services. This amount represent a huge transfer of wealth from urban to rural population in the country.

Animal Sacrifice:

Eid al Adha commemorates the willingness of Prophet Ibrahim (Abraham) to sacrifice his most beloved son Ismail (Ismael) when asked to do so by God. It follows Hajj, the annual pilgrimage of Mecca by Muslims from around the world each year. Muslims believe that God had angels remove Ismael from under the knife of blindfolded Abraham and had him replaced by a lamb.

Economic Activity: 

The commemoration includes sacrifice of cows, goats, lambs and camels on Eid al Azha. This year, the media reports indicate that 4 million goats, 2.7 million cows, 800,000 lambs and 30,000 camels are being slaughtered in Pakistan on the occasion.

Using a conservative average price of $600 per cow, $200 per goat or lamb and $800 per camel, the total cost of animals adds up to $2.8 billion. Various services offered by, transporters, butchers and slaughter houses are in addition to this amount.

Apparel Purchases:

The Eid celebration includes buying and wearing new clothes and shoes as well as women's jewelry and other accessories that add up to another $700 million spent in Pakistan.

Charity:

Animal hides and significant amounts of meat are donated to various charities and the poor on Eid. Charities like Edhi Foundation are big beneficiaries of this largesse.

Rural Economy:

Rural residents who raise animals for sale on Eid bring in billions of dollars into the rural economy. These inflows help provide livelihoods and alleviate rural poverty.

Summary:

Eid al Azha this year represents a $3.5 billion worth of economic activity that is generating jobs and helping the charities and the rural residents of the country.

Related Links:

Haq's Musings

Pakistan Among Top Meat Consuming Nations

Livestock Revolution in Pakistan

Pakistan's Rural Economy

Strong Eid Sales in Pakistan

Happy Eid-ul-Azha: Good Hygiene and Humane Treatment of Animals

Ho Kya Raha Hai - Impact of Eid-Ul-Adha on Our Economy - 12th Septe...

Views: 661

Comment by Riaz Haq on September 13, 2016 at 10:56am

A study by trade organizations puts the total value of Eid shopping this year at Rs 1000 billion (US $ 10 billion).

This trend coincides with a rise in the prices of clothes, shoes and fashion accessories. The prices have registered a 20 percent increase as compared to the previous year.

Economists attribute these trends to both traditional surge in prices and uptick in economic activity related to industrial, services, infrastructure development, domestic tourism, and growth of modern IT sectors. Only this week, Pakistan has found its way back into the category of emerging economies on the back of expanding GDP, robust performance of Karachi Stock Exchange, foreign remittances inflows, and macroeconomic stability.

Discussions with traders and entrepreneurs reveal that the trends bode well for the country, which has to pull large populations in far-off areas out of poverty.

In addition to conventional shopping like clothes, citizens are also purchasing new furniture and home appliances during the Eid season.

Except for high-end brands and the imported commodities, prices are generally stated to be slightly above last year’s level. But the children’s garments are expensive due to rising demand and traditional profiteering on part of sellers.

http://www.samaa.tv/blogs/2016/06/pakistans-eid-shopping-likely-to-... 

Comment by Akhtar Hussain on September 13, 2016 at 11:29am

Excellent article.  I am thrilled to hear about prosperity in Pakistan.  People of Pakistan are great consumers and this exchange of wealth from the wealthy to the middle classes is an excellent example of a thriving economy.  Domestic consumption is a good indicator of a healthy economy.

On this auspicious occasion I would like to wish all Pakistanis, Eid Mubarak and remember all Pakistanis are one it does not matter which tribe you belong to.

Long live Pakistan!

Comment by Riaz Haq on September 16, 2016 at 9:33am

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), while quoting some estimates, has said that Rs200 billion to Rs300 billion has flown from urban centres to rural areas of the country during the recent Eid festival, which will prove a boon to the farmers and backward regions.

“Some estimates suggest that around Rs200 to 300 billion has been shifted from urban centres to rural areas during Eidul Azha, of which 85% was spent on the purchase of sacrificial animals,” said FPCCI President Abdul Rauf Alam in a statement on Thursday – the third day of Eid.

Over 1,800 land in hospitals in Punjab due to overeating during Eid holidays

He pointed out that Eidul Azha generated great economic activity around the Muslim world and its ballooning size was a very positive indicator for Pakistan’s economy, particularly for the rural economy.

Cattle traders in Pakistan mostly come from rural areas to sell sacrificial animals in big and small cities after rearing cattle for months and even more than a year. “Rural residents, who raise animals for sale on Eid, bring billions of rupees to the rural economy and help alleviate poverty and unemployment,” he said.

“It (Eidul Azha) creates millions of temporary jobs, benefits the jobless, transporters, tanners, textile manufacturers, social and religious groups as well as others.”

It promotes the livestock sector which accounts for 58.5% of the agricultural sector and over 12% of the national economy.

“Crops are going down but the livestock sector is growing 3.6% per year; a little focus can help the country export a significant number of cattle to Saudi Arabia, which will give a boost to the rural economy and bring foreign exchange to the country,” Alam said.

How do Americans and non-Muslims view Eidul Azha?

Saudi Arabia is a huge market for cattle as besides regular consumption in households, hotels, wedding ceremonies and other occasions, millions of animals are sacrificed during Hajj every year.

Pointing out that Pakistan had become world’s fourth largest milk producer, he lamented that lack of value addition was preventing the country from capitalising on livestock sector’s potential.

The FPCCI president was of the view that a large number of people were willing to spend more liberally on the purchase of animals and price movements had failed to deter them. Apart from this, the production of cattle is increasing in the country.

http://tribune.com.pk/story/1182324/eidul-azha-generated-economic-a...

Comment by Riaz Haq on August 20, 2018 at 11:24am

Eid economy takes an upturn
Afshan SubohiUpdated August 20, 2018

https://www.dawn.com/news/1428014/eid-economy-takes-an-upturn

The demand price spiked by 20 per cent on average in 2018 because of higher transport and incidental expenses, but the increase in the selling price is in the range of five to 10pc depending on the buyers’ negotiation skills.

The greater volume of cattle trade on “Bakra Eid” means a bigger net wealth transfer from urban to rural Pakistan, with cattle farmers of Punjab being rewarded generously for their better cattle rearing skills by the market. In contrast, ultimate beneficiaries of higher consumer spending on Eidul Fitr are urban manufacturers, traders and service providers. The gains, however, are not equitably shared across all regions on both festive occasions owing to the geographical disparities in development.

Roughly one-tenth of the total population of goats and cows is sacrificed every year during the three days of Eidul Azha. Livestock has a growing share of 58.9pc in the agriculture sector and 11.1pc in the gross domestic product, according to the Pakistan Economic Survey 2017-18. The growth in the livestock sector remained 3.7pc last year, which is 80 basis points higher than the agriculture-sector growth of 2.9pc.

Currently, general sentiments are upbeat. The nation has heaved a sigh of relief at the peaceful transfer of power for the third consecutive time.

---.

The cash-based nature of cattle trade makes it difficult to monitor the flow of money. There is a whole chain of people involved in the activity that spans over the year and culminates on Eid. There are investors, breeders, cattle farm owners, short-term retail investors, brokers, transporters, mandi operators, caretakers in urban centres, service providers and millions of temporary workers. Identifying the share of each segment in the pie of the Eid economy is hard, but the risk-reward ratio for brokers with both ends secured is said to be the most lucrative. For all others, risks are high and returns are uncertain.

Many dependable indicators that shed light on the size of the market — like the data of hides and skins collected and the consolidated number of the headcount of cattle marked by the state-managed markets — are released after a lag of one month. At this point, we know that remittances spiked by 25pc in July to $1.93 billion from $1.5bn in the same month of 2017. Some of this hike is attributed to Eidul Azha-related transfers by overseas Pakistanis.

The figures of Eid-induced cash withdrawals and the tally of additional payments to employees in the form of bonuses have yet to surface.

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Final figures are not available, but early indicators point to a massive Eidul Azha economy revolving primarily around cattle trade. Preparations for the festive occasion spur the sale of clothes, shoes and accessories, but the major share of Eid-centric liquidity is soaked up by qurbani.

“Counting their blessings in a pleasant weather this year, Pakistanis are all set to loosen the purse strings and delve deep in fervour to celebrate the religious festival of Eidul Azha. The visible level of the activity is more than the last year’s as male members of families hit the mandis and ladies frequent malls for preparation,” a market watcher commented.

The composition of the Eidul Azha market is expected to remain unaltered as Pakistanis switch in greater numbers to the ‘group’ segment to follow the religious tradition of sacrificing cattle in the name of Almighty.

“I would love to keep the affair exclusive, but my conditions do not permit the luxury any more. After several visits to the mandi over the past week, I have decided to pool in with neighbours for a collective qurbani as the prices are way beyond my reach. I settled for a pair of goats when cows became too expensive. Last year, I sacrificed one goat. My income increment has failed to keep pace with growing family expectations,” said a senior officer of the Punjab Livestock Department over the phone.

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