KARACHI: As Pakistan gears up to celebrate its independence day on Aug. 14, national festivities have generated economic activity worth billions of rupees.
But according to importers and dealers, the country meets 75-80 percent of demand for celebratory merchandise — such as flags, badges, bunting and hats — by importing them from neighboring China.
“Although there’s no official data available, we estimate economic activities spurred by independence day festivities at between 10 billion ($81 million) and 20 billion rupees,” Atiq Mir, chairman of All Karachi Tajir Ittehad — an umbrella organization of nearly 100 market associations in the port city of Karachi — told Arab News on Sunday.
Importer Abdullah Abdul Habib told Arab News: “This year, demand for stuff required for independence day celebrations has increased by 30-40 percent.”
He said: “The growing demand has been met by importing the required products from China since the local industry is unable to meet such high demand.”
He added: “The variety of products and the ability to supply them are among the main reasons why Chinese goods are in such great demand.”
He said: “The number of importers has increased, not only in Karachi but also in Lahore, Quetta and Peshawar.”
As independence day approaches, the number of temporary vending stalls has increased. “I run a paper business nearby, but due to the high profit margin I’ve set up this stall at the main market,” said Sarfraz, a vendor at the famous Pakistan Chowk.
Purchases of clothes in green and white, Pakistan’s national colors, are surging, and websites are offering “freedom discounts.”
Pakistan came into existence on Aug. 14, 1947, with the partition of the Indian subcontinent, which had been a British colony since 1849.
Pakistan independence celebrations cause surge in economic activity
Pakistan independence celebrations cause surge in economic activity
- Pakistan meets 75-80 percent of demand for celebratory merchandise — such as flags, badges, bunting and hats — by importing them from neighboring China
- Online shopping websites are also offering incentive packages and special ‘freedom discounts’ to internet users
IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’
- Fund backs sale of national airline as key step in divesting loss-making state firms
- IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities
KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).
The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.
Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.
“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.
“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.
The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.
Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.
Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.
