Record inflation dampens festive mood as Eid shopping drops by over 40% in Pakistan

A woman looks at jewelry at market during shopping ahead of the upcoming festival of Eid al-Fitr in Karachi on April 19, 2023. (AFP)
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Updated 21 April 2023
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Record inflation dampens festive mood as Eid shopping drops by over 40% in Pakistan

  • Traders say people are prioritizing essential goods over clothing and other Eid-related items amid economic uncertainty
  • According to an estimate, the overall Eid shopping is down to around Rs20 billion in Karachi alone ahead of Eid this year

KARACHI: The festive shopping mood ahead of the Muslim holiday of Eid Al-Fitr in Pakistan has dampened due to record high inflation and a major economic downturn, with traders complaining the situation has led to a drastic drop in sales by over 40 percent this year.

Eid is usually the most inclusive holiday celebration in the country during which friends and families get together in their new attire and exchange gifts. As the festival approaches, markets are typically crowded since people like to buy a range of products, including jewelry, clothes, and shoes.

However, buyers and sellers have been experiencing a challenging season in Pakistan this year, as the country is currently undergoing an economic turmoil and experienced 35.4 percent inflation last month which was more than double on year-on-year basis.

“At the minimum, Eid sales have dropped by 40 percent this time as compared to the Eid season last year,” Kashif Chaudhry, president of Markazi Tanzeem-e-Tajran Pakistan, or Central Organization of Pakistani Traders, told Arab News on Wednesday.

“High inflation is discouraging buyers to make their purchases while maintaining stocks has also become an issue this year since many manufacturers have been unable to honor their commitments and deliver orders on time due to import restrictions,” he added.




In this picture taken on April 16, 2023, people buy footwear at a store during shopping ahead of the upcoming festival of Eid al-Fitr in Lahore. (AFP/FILE)

Pakistan has restricted imports to prevent the outflow of US dollars amid depleting foreign exchange reserves that currently stand at $4 billion. The restriction has created shortage of raw materials for industrial products.

The ongoing war in Ukraine along with last year’s devastating floods and a stalled $7 billion International Monetary Fund bailout program have also exacerbated the economic crisis in the country.

Chaudhry said the people facing difficult economic circumstances were even struggling to meet their basic needs, such as food expenses and payment of utility bills, adding most of them were prioritizing purchasing of essential goods over clothing and other Eid-related items.

Atiq Mir, chairman of All Karachi Tajir Ittehad (AKTI), an umbrella organization of major business centers in the port city, agreed with Chaudhry.

“Sales are not satisfactory since the beginning of the season and the situation is extremely complex, confusing, and difficult to understand,” he told Arab News.

“Traders in major shopping centers in areas like Defense Society, Saddar, Hydery Market, and Tariq Road are complaining that their sales have dropped by more than 40 percent,” he added.




Women and children shop clothes ahead of the Eid al-Fitr, which marks the end of the holy month of Ramadan, at a market in Peshawar on April 19, 2023. (AFP)

He acknowledged that markets in Karachi were still crowded, though he maintained this was because most people were taking a leisurely trip instead of actively seeking to buy products.

“They are not genuine buyers,” Mir said. “They are window shoppers who are on entertainment or pleasure-seeking trip. For every single buyer, about four or five people can be seen roaming around the city’s markets for fun.”

Most of the people are after cheap products with the price tag of about Rs2,500, he added.

The AKTI chief estimated that in Karachi alone the value of the overall shopping would be around Rs20 billion which was lower than previous year’s Rs25 billion.

“Around 50 percent of Eid stock is still unsold,” he said, adding: “I have talked to traders and they say they are in huge trouble and worried about making payments to their workers.”

Pakistani traders said most buyers this year were young people rather than elderly males who preferred to stay away from shopping.

“Men have been sacrificing their desires in the past, but this year they are having to forgo much more due to their family priorities,” Rana Tariq Mehboob, chairman of the Chainstore Association of Pakistan (CAP), a representative body of the country’s over 200 brands sold in more than 20,000 outlets in different cities, told Arab News.

“Most of them have been making purchases for their children and families, though there has also been a decline in the shopping by women belonging to low-income brackets since the prices of goods have spiked and the disposal income is fixed or has shrunk in real terms.”

The CAP chief said the member chain stores were also facing a tough situation with 25 to 30 percent decline in their sales this season as compared to the one last year.

“There is negative growth in the sales of casual wear for men and kids since the beginning of the current fiscal year in July 2022,” Mehboob said. “The current economic crisis is the main reason because the current situation is severely hurting the buying power of most households.”

Most shopkeepers said they were facing an awkward situation amid depressed sales and were “fed up with people making rounds to enquire about prices of different products.”

“People come in large numbers to ask about the prices and then leave,” Amir Aleem, a salesperson, said. “This is the kind of routine every day as we hardly find genuine buyers.”

However, most shoppers said they preferred to remain passive because of the uncertain economic situation and were trying to save for any future emergency.

“I have to keep in mind the future expenditures as the economic situation remains uncertain and more inflation is expected obviously due to the rising dollar-rupee disparity,” said Ali Mehmood, an office worker, who was visiting a market with his family.

Another buyer, Muhammad Aslam, worried about high electricity and other utility bills, saying he was cutting down on Eid shopping for himself and would only buy for children.


Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest

Updated 9 sec ago
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Pakistani authorities block roads and motorways ahead of opposition’s Islamabad protest

  • Jailed Imran Khan’s party has called for a “long march” to Islamabad on Nov. 24 to demand his release
  • Motorway police say as per intelligence reports, protesters will be armed with sticks and slingshots

ISLAMABAD: Pakistan’s National Highways and Motorway Police (NHMP) has said that motorways across the country have been sealed from various areas to protect people’s lives ahead of a planned protest by former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party to Islamabad on Sunday.
Pakistani authorities sealed off major arteries and roads with shipping containers leading to Islamabad from the surrounding Rawalpindi city and other areas on Friday ahead of the PTI’s “long march” scheduled for Sunday, Nov. 24.
In a notification released on Friday, the NHMP cited intelligence reports that protesters were planning to disrupt law and order in the capital, adding that they would be armed with sticks and slingshots.
“To prevent any untoward situation and to protect the lives of the people, motorways have been closed from various locations,” the NHMP said.
“The lives and property of the people will be guaranteed at all costs. Those who take the law into their hands will be dealt with strictly.”
Hours earlier, the NHMP had shared a notification on its social media platform X in which it had said that certain sections of the motorway were closed due to maintenance work. These sections were: M-1 Islamabad to Peshawar, M-2 Islamabad to Lahore, M-3 Lahore to Abdul Hakeem, M-4 Pindi Bhattian to Multan, M-14 Hakla to Yarik and M-11 Lahore to Sialkot.
As per local media reports, the Metro Bus service between the twin cities of Islamabad and Rawalpindi will be suspended on Nov. 24 while a ban on public gatherings has been imposed in Punjab from Nov. 23-25 ahead of the PTI’s march.
The PTI’s protest is primarily aimed at pressurizing the government to end Khan’s imprisonment which has lasted for over a year on what his party contends are politically motivated charges. The party also aims to raise its voice against alleged rigging in the Feb. 8 general elections while calling for measures to ensure judicial independence, which it says has been undermined by the 26th constitutional amendment. The government denies this. 
Earlier this week, Pakistan’s interior ministry had authorized the deployment of paramilitary Punjab Rangers and Frontier Corps troops in Islamabad to maintain law and order.
Pakistan’s parliament also passed a law earlier this year to regulate public gatherings in Islamabad, specifying timings for rallies and designating specific areas. The law prescribes three-year jail terms for participants in illegal assemblies and 10-year imprisonment for repeat offenders.


Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release

Updated 7 min 23 sec ago
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Families of Pakistanis trapped in forced labor in Myanmar urge authorities to secure release

  • Thirteen Pakistanis were allegedly lured with job offers and trafficked to Myanmar from Thailand
  • Families say captors torture them to lure others into cryptocurrency scams disguised as investments

ISLAMABAD: The families of 13 Pakistani nationals allegedly taken hostage by job scammers in Myanmar have appealed to authorities this week to secure their release, saying their loved ones are being confined to a compound, subjected to torture and forced to lure customers online for cryptocurrency scams.
The incident is part of a growing trend of Pakistanis falling victim to transnational criminal networks operating in Southeast Asia. In July this year, families of six other Pakistanis reported similar cases, claiming their relatives were held hostage by criminal gangs in Myanmar.
According to the families of the 13 individuals, including two women, they traveled to Thailand in March on valid work visas for a construction company, where they worked for two months. Subsequently, they were relocated to Laos and then Myanmar after their employer claimed to be moving operations.
The victims, who had completed short computer and IT courses, had prior experience in online jobs and were recruited by an agent in Rawalpindi, Pakistan.
“They are now being held hostage in Myanmar, subjected to physical torture and sleep deprivation and forced to lure customers from Europe, America and Canada into cryptocurrency scams,” Danish Qamar, a resident of Wah Cantt in Punjab province, whose brother and nephew are among the trapped, told Arab News.
“They are tortured and made to work over 18 hours daily to trap people into fake cryptocurrency investments,” he added. “We have written applications to Pakistan’s foreign office and the Overseas Pakistani Foundation, but there has been no meaningful response.”
The issue of Myanmar’s criminal zones has also raised global concern, with the United States Institute of Peace reporting in November 2022 that these areas have been facilitating human trafficking, slavery and international fraud on a large scale.
Such criminal activities exploit vulnerable individuals, lured by the promise of high-paying jobs abroad, only to be trapped in forced labor and fraudulent operations.
Earlier this year, Pakistan’s foreign office acknowledged reports of Pakistani citizens being detained by such networks in Myanmar, saying that its diplomatic mission in the Southeast Asian country was working with local authorities to secure their release. The foreign office also emphasized the need for a coordinated international response to combat human trafficking and transnational organized crime.
Asked about the 13 Pakistanis, foreign office spokesperson Mumtaz Zahra Baloch reiterated in a brief response to Arab News, “Our mission is in contact with the relevant authorities.”
However, she did not provide further details on the number of Pakistanis held or the measures being taken for their release.
According to the families, the 13 individuals have been trapped in Myanmar for about 20 days. Efforts to seek help from Pakistani missions in Myanmar and Thailand have proven futile, as officials reportedly cited limited access to the “lawless” border regions where the victims are being held.
“Officials say this is a lawless area, but the scammers have all the facilities like the Internet and electricity to run their operations,” said Maqsood Sadiq, the father of Suleman, 20, one of the hostages.
“We urge the government to act immediately to secure their release,” he added.


Pakistan PM forms committee to resolve tensions with key coalition ally

Updated 34 min 41 sec ago
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Pakistan PM forms committee to resolve tensions with key coalition ally

  • Deputy PM Ishaq Dar, Defense Minister Khawaja Asif and Law Minister Azam Nazeer Tarar key members of committee
  • PPP Chairman Bilawal Bhutto-Zardari last week criticized federal government for imposing Internet restrictions, other issues

ISLAMABAD: Prime Minister Shehbaz Sharif this week formed a committee to resolve tensions between the ruling Pakistan Muslim League-Nawaz (PML-N) party and the Pakistan Peoples Party (PPP), a key coalition ally of the government, state-run media reported. 
PPP Chairman Bilawal Bhutto-Zardari publicly lashed out at the PML-N-led government last week, regretting its decision to block virtual private networks (VPNs) across the country. Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online.
Speaking to journalists at his party’s media cell, the PPP chairman had also criticized the government for approving a project to construct new canals on the Indus River, saying the decision had been taken without consulting his party. 
“Prime Minister Shehbaz Sharif has constituted a committee to resolve issues between the Pakistan People’s Party and the Pakistan Muslim League-Nawaz and to foster cooperation on political and other matters,” state broadcaster Radio Pakistan reported on Friday. 
Deputy Prime Minister and Foreign Minister Senator Muhammad Ishaq Dar, Defense Minister Khawaja Muhammad Asif, Minister for Law Azam Nazeer Tarar and Minister for Economic Affairs Ahad Khan Cheema are members of the committee. 
It also includes Minister for Kashmir Affairs and Gilgit-Baltistan Engineer Amir Muqam, Adviser to Prime Minister Rana Sanaullah, Speaker Punjab Assembly Malik Ahmad Khan, Senior Punjab Minister Marriyum Aurangzeb, PML-N leaders Khawaja Saad Rafique, Jaffar Khan Mandokhail, and Bashir Ahmed Memon, it added. 
“The Prime Minister has assigned the committee the responsibility of having detailed consultation with the PPP to ensure political collaboration and resolve the issues,” Radio Pakistan said. 
It added that the committee would hold talks with members nominated by the PPP to discuss the future course of action between the two parties. 
The PPP is a major coalition ally of the coalition government which also voted Sharif into power after the contentious national election in February. While it is not part of the federal government, the PPP has its government in Pakistan’s southern Sindh province. 
Sharif’s government has relied on the PPP’s crucial votes in parliament to pass the national budget and key constitutional amendments earlier this year.


Senior political leader shot dead amid escalating militancy in Pakistan’s northwest

Updated 22 November 2024
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Senior political leader shot dead amid escalating militancy in Pakistan’s northwest

  • Mashaal Azad, a PPP leader in Lakki Marwat, was ambushed while going for Friday prayers
  • Attack occurred the day Pakistan’s army chief was in Peshawar to discuss security situation

PESHAWAR: Amid a string of deadly attacks that have claimed the lives of dozens of civilians and security officials in Pakistan’s northwest, unidentified gunmen on Friday shot dead a senior leader of the Pakistan Peoples Party (PPP) in the volatile Lakki Marwat district of Khyber Pakhtunkhwa (KP) province, police said.
The restive district, a hotspot of militant activity, witnessed unprecedented protests in September when police officers, joined by civil society members and tribal elders, staged sit-ins and blocked the Indus Highway.
The demonstrations followed a spate of militant attacks that killed several policemen, prompting demands for enhanced security measures and greater autonomy for the law enforcement agency in counterterrorism operations.
Speaking to Arab News over the phone, the police spokesperson in the district, Shahid Marwat, said the slain PPP leader Mashaal Azad was heading toward Sarai Gambila, a rundown locality on the outskirts of the district’s center, for Friday prayers when he was ambushed by gunmen.
“Mashaal Azad was killed by unidentified bike riders on the Canal Road near Kajoori Hotel within the limits of Sarai Gambila police station,” Marwat said.
The incident occurred on the day Pakistan’s army chief General Asim Munir was visiting Peshawar, the provincial capital of KP, where he vowed action against militants and reiterated the army’s firm resolve to dismantle hostile militant networks.
The killing also follows a gun attack on a convoy carrying members of the minority Shiite community in the Kurram tribal district a day earlier, leaving more than 40 people dead.
Earlier this week, on Tuesday, 10 Pakistan army soldiers and two members of the paramilitary Frontier Constabulary were killed when militants attacked a checkpost in the northwestern Bannu district.
Rabnawaz Marwat, a tribal elder in Lakki Marwat, said the late PPP leader was a long-time and senior party figure who had been a strong voice against militancy in the region.
“Late Azad had served as a member of the provincial council of PPP,” he informed. “He had also served as a student leader of PPP in Lakki Marwat. In addition, he was an active tribal elder who played a leading role in dispute resolution in the region.”
According to the police spokesperson, a report of the incident has been lodged against unidentified persons, and further investigations will be initiated.
“It is mentioned in the report that late Azad had no personal enmity with anyone in the area,” he said. “It seems to be an act of targeted attack by terrorists.”
On Tuesday, Prime Minister Shehbaz Sharif chaired a meeting of civil and military leaders to review the country’s security situation, during which it was agreed to take action against those involved in militant violence.


Pakistan’s first hand-drawn animated film ‘The Glassworker’ makes Oscars eligibility list

Updated 22 November 2024
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Pakistan’s first hand-drawn animated film ‘The Glassworker’ makes Oscars eligibility list

  • The film was released in July, with its director calling it the result of ‘passion and perseverance’
  • Selection committee in the country says it has broken ‘new ground for animation’ in Pakistan

ISLAMABAD: Pakistan’s first hand-drawn animated film, “The Glassworker,” has been named on the list of eligible films for the 97th Academy Awards in both the Animated Feature Film and International Feature Film categories, the Academy of Motion Picture Arts and Sciences announced this week.
Directed by young Pakistani animator Usman Riaz, the film was released in July and features 1,477 cuts and 2,500 individual drawings. The coming-of-age tale follows Vincent, a young apprentice at his father’s glass workshop, and Alliz, a talented violinist and the daughter of a military colonel.
Against the backdrop of a looming war, their relationships with their parents and each other are tested.
“Thirty-one features are eligible for consideration in the Animated Feature Film category for the 97th Academy Awards,” the Academy said on its website, with “The Glassworker” among them.
“Films submitted in the Animated Feature Film category may also qualify for Academy Awards in other categories, including Best Picture,” it added. “Animated features that have been submitted in the International Feature Film category as their country’s official selection are also eligible in the category.”
Five films from the list will be shortlisted for nominations in the Animated Feature Film category, with the ultimate winner announced at the Oscars ceremony scheduled for March 3, 2025.
A team of 250 national and international cast and crew members worked on the film, which was produced by Riaz’s Karachi-based Mano Animation Studios.
The film became Pakistan’s first-ever animated feature to be nominated for Oscars consideration in September.
“Usman and Mano’s work has demonstrated exceptional storytelling and artistry while breaking new ground for animation in Pakistan,” the Academy Selection Committee of Pakistan said earlier while lauding the project. “This achievement will be remembered in our cinematic history.”
Riaz described his effort as a result of “a decade of passion and perseverance” when the film was nominated for Oscars from Pakistan.
“I am deeply humbled by the selection and hope this story resonates with audiences everywhere, showcasing the talent and creativity Pakistan has to offer,” he added.