KARACHI: Khadeeja Manzoor haggled with a vendor at a busy market in Pakistan’s Karachi over the price of vegetables. The sight is not an unusual one in Pakistan, especially during the holy month of Ramadan, where people flock to fruit and vegetable markets in thousands daily to buy food items.
Muslims break their fast with the evening iftar meal during the holy month of Ramadan, consuming dishes prepared with fruits and vegetables in large amounts. This triggers a surge in consumer spending significantly during the holy month, one that increases sales at grocery stores and marketplaces.
“Our spending increases during Ramadan,” Manzoor, 45, told Arab News. “They (actually) double because though the prices of vegetables have declined a bit, other things have become costlier,” she added.
Pakistan has long grappled with an economic crisis that saw inflation surge to a historic 38 percent in May 2023. However, the government has since then achieved some economic gains, with the country’s monthly inflation rate dropping to 1.5 percent in February on a year-on-year basis.
Dry fruit seller Wasib Abbasi noted that people spent more on items such as Rooh Afza, a sugary drink considered a staple Ramadan diet, and dates during the holy month. This causes a surge in sales during Ramadan, he added.
“Our sales remain normal during the first 15 days of Ramadan but significantly increase during the second half,” Abbasi, who runs a store selling dry fruits at the busy Empress Market, told Arab News.
Financial analyst Muhammad Waqas Ghani agrees the increased demand for food items and the increased inflow of remittances to Pakistan during Ramadan supplements the country’s economic growth. He said Pakistan usually sees a rise of 20 percent in remittances during the holy month every year.
Remittances are a lifeline for Pakistan’s cash-strapped economy, playing a critical role in stabilizing foreign exchange reserves and supporting its balance of payments. Overseas Pakistanis remitted $3.1 billion in February.
“Ramadan does have a significant economic angle. Demand rises in food, lifestyle, and other areas like footwear,” Ghani, the head of research at JS Global Capital Ltd., a commodities brokerage company, told Arab News.
During Ramadan, commercial banks also deduct billions of rupees from people’s accounts on account of the annual Islamic charity, Zakat.
Ghani said the circulation of Zakat funds among the masses also increases their purchasing power, which leads to more consumer spending.
Atiq Mir, chairman of the All Karachi Tajir Ittehad (AKTI), a body of over 400 trade groups in the southern port city, described Ramadan as the “spring month” for traders and citizens alike in terms of both divine blessings and material gains.
“The way people come to bazaars with their children gives a good look,” Mir said, adding that trade “runs above normal” during the holy month.
“Given the size of its population, Karachi alone is a Rs100 billion market if people came out proportionately for Eid shopping only.”
