India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

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A motorcyclist rides past a Pakistani JF-17 fighter jet model displayed along a road in Karachi on August 13, 2025, on the eve of the country's independence day celebrations. (AFP)
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A vendor selling Pakistan's national flags and other accessories poses for a photograph at a market in Karachi on August 12, 2025, ahead of the country's Independence Day celebrations. (AFP)
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Updated 13 August 2025
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India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

  • Flag maker reports sales up by up to 50 percent as households and businesses spend heavily on August 14 decorations
  • Traders say brisk Independence Day buying is lifting markets despite inflation squeezing consumer budgets

KARACHI: Pakistan’s largest flag manufacturer, VIP Flags, is expecting around 50 percent growth in sales this year as the public marks the country’s 78th Independence Day with unusual zeal, fueled by celebrations of victory in the May 2025 conflict with India.

The two nuclear-armed neighbors, which have fought three major wars since 1947, engaged in their deadliest fighting in decades this May. The fighting ended on May 10 after US mediation, with Prime Minister Shehbaz Sharif’s government declaring victory and saying it had downed at least six Indian fighter jets.

Officials have since linked the conflict’s outcome to the heightened national fervor surrounding August 14 this year, reflected in booming flag markets and sales of other Independence Day paraphernalia.

“Our business, all the businesses have grown 50 percent,” said VIP Flags CEO Nisar Ahmed Sheikh, adding that much of his stock had been sold to marchers rallying in support of Pakistan’s armed forces during the war with India.

VIP Flags manufactures flags for domestic customers, the armed forces, and international buyers in Saudi Arabia and the UAE, and holds Guinness World Records for the largest flags made in 2004 and 2008.

Sheikh said sales this year would likely run into millions of units.

“Obviously when people were filled with passion [after the war with India] and started hoisting flags, the flags business saw an uptick and increased compared to last year,” he told Arab News. 

“It is still growing and people are putting flags on their cars, bicycles and motorcycles.”

Sheikh said the surge in sales extended well beyond flags, with market vendors incorporating Independence Day themes into a wide range of products — from shirts, mufflers and headbands to shawls, dresses and children’s clothing — creating a vibrant festive atmosphere.

“People must be spending billions of rupees on this (celebrations) and this spending boosts the economy,” the CEO said. 

In Pakistan’s commercial hub of Karachi ahead of Aug. 14, large and small flags adorned vehicles, houses and office buildings, alongside buntings and night-time illuminations. Meanwhile, federal and provincial governments are holding daily events, with top officials like the prime minister and army chief expected to attend ceremonies in Islamabad on Aug. 13 and 14.

“The last time we saw such a show of national zeal on Independence Day was in Zia’s time,” Sheikh said, referring to former military ruler Zia-ul-Haq. “We see people decorating their houses, vehicles and vicinities with flags and buntings and badges.”

Abdul Wahab, a finisher at one of Sheikh’s factories, said he expected at least a 25 percent income increase this season. 

“We are seeing a rush in the market because of this war we recently fought with India,” said the 26-year-old, who plans to work overtime to meet demand.

For lawyer Bad-e-Saba, the occasion was a chance to pass on a message to the next generation.

“The war we recently won against Hindustan is a matter of great pride for us. We want to convey it to our children so they could know where we are standing against our enemy,” she said.

“We want to tell our enemies that we can take good care of our country and our next generation will do it better.”


Pakistan stocks plunge 9 percent, trading halted as Middle East tensions rattle markets

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Pakistan stocks plunge 9 percent, trading halted as Middle East tensions rattle markets

  • Benchmark index triggers automatic halt minutes after opening
  • Rising oil prices raise concerns over inflation, import bill and currency pressure

ISLAMABAD: Pakistan’s stock market fell nearly 9 percent within the first few minutes of trading on Monday, triggering an automatic one-hour halt under risk management rules, following intensifying hostilities in the Middle East.

Trading on the Pakistan Stock Exchange (PSX) was temporarily suspended after the sharp early selloff, reflecting panic across regional markets. The market reaction came after the United States and Israel conducted strikes in Iran over the weekend that killed Supreme Leader Ayatollah Ali Khamenei and other senior officials. Iran retaliated by bombing US bases in Gulf states and direct attacks on Israel. Concerns over potential disruption to energy supplies, particularly through the Strait of Hormuz l, which handles roughly one-fifth of global oil shipments, pushed crude prices sharply higher.

Although Pakistan, which borders Iran, is not directly involved in the conflict, the country remains vulnerable to external shocks due to its heavy reliance on imported energy and remittances from the Gulf region, analysts said.

“Due to the evolving nature of the conflict and involvement of various countries, the volatility may continue till the resolution or de-escalation of this conflict,” Topline Securities said in a note to clients.

The brokerage said Pakistan’s benchmark index has already fallen about 19 percent from its January high of 189,000 points and warned that further instability could weigh on investor sentiment.

Oil prices rose 6–7 percent in the latest session and are up about 15 percent over the past seven trading sessions amid mounting regional uncertainty, according to the brokerage note.

Pakistan imports an estimated $15–16 billion worth of petroleum products annually, including crude oil, refined fuel, LNG and LPG. Every 10 percent increase in oil prices could raise the country’s import bill by approximately $1.5–1.6 billion, Topline said. Other imports linked to energy prices include edible oil, coal and rubber-based products.

Higher oil prices could also feed into inflation. 

“Every 10 percent increase in crude oil prices may elevate inflation estimates by 40–50 basis points,” the brokerage said, noting both direct fuel price impacts and secondary effects across supply chains.

Analysts also flagged potential currency pressure, as rising import costs and concerns over Middle East instability, a region that accounts for more than half of Pakistan’s remittance inflows, could weigh on the rupee.

However, Topline said Pakistan’s foreign exchange reserves remain at relatively comfortable levels due to recent credit rating improvements and proactive central bank interventions.

With Monday’s decline, the market is now trading below 6.5 times projected 2027 earnings, compared with a historical average of 6.9 times, the brokerage added.

The conflict’s trajectory remains uncertain, and investors are closely watching developments in the Gulf, particularly around energy routes and further retaliatory actions.