Pakistan’s retail sector has witnessed a sharp decline in Eid Ul-Azzha shopping this year as sales have crashed by 60 percent compared to last year due to inflation, rising fuel prices and high taxes.
Eid Ul Azha usually generates massive spending on sacrificial animals, clothing, footwear, electronics, gifts and food items. Traders had expected retail activity worth Rs. 500 billion during the festival period while livestock trade was projected to cross Rs. 1.4 trillion.
Weak consumer purchasing power has severely reduced market activity across major cities.
Pakistan’s inflation rate climbed to 10.9 percent in April from 7.3 percent a month earlier, driven largely by higher fuel costs and supply pressures linked to the Gulf War.
The slowdown has badly affected shopping hubs that depend on Eid spending to achieve yearly sales targets, especially businesses dealing in garments, shoes and food items.
Aggressive taxes have further weakened consumer demand. Interest rates remain elevated at 11.5 percent, while retailers also complain about increased pressure from the Federal Board of Revenue.
In Lahore, many families are now prioritizing fuel, school fees and groceries over Eid shopping due to rising living costs.
Business owners say the ongoing downturn has left many retailers struggling to clear seasonal inventory and manage operational expenses.
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