KARACHI, Oct 23: Over Rs30 billion were drawn from banks in Ramazan for Eid shopping, and the amount is 30 per cent higher than what was drawn in the holy month last year, estimate bankers.
They said this higher figure inflated the cost of goods and services.
However, they maintained that despite higher outflow of cash, banks did not face any scarcity. Last year, banks were out of liquidity and the customers faced immense problems in getting their own cash.
Banks said they could not compile data of outflow. However, their reported estimates showed that Karachi witnessed the biggest outflow.
They said huge transactions from Karachi to Azad Kashmir were also recorded.
“I believe that besides Zakat, additional cash help was also provided from Karachi to quake victims during Ramazan,” said Abi Ali, an officer at a local bank.
Some bankers believe that the outflow of cash from banks could be more than Rs30 billion.
“Another reason for the huge outflow is the roaring business that exchange companies did in Ramazan. They also provide rupees withdrawn from banks in exchange of foreign currencies,” said another banker.
The exchange companies said their business rose by 40 to 60 per cent this Ramazan as compared to last year. They believe that huge funds for charity also landed in Pakistan from abroad. These funds were transferred through the Hundi system, which finally came to the exchange companies for local currency. Heavy withdrawals were noted in National Bank, Habib Bank, MCB, United Bank, Allied Bank and Bank Alfalah.
The bankers said unlike the previous year, a massive withdrawal was made throughout the holy month. Last year, a powerful earthquake hit the north of Pakistan on the 3rd of Ramazan and the first 15 days of Ramazan witnessed slow withdrawal.
“This year luxuries of very high cost were included in the list of shopping, especially clothing varieties imported from India and produced by well-known designers in Pakistan,” said Tariq Abbas, business manager at a garments shop on Tariq Road.
Boutiques and big shops offered especially-designed dresses for men and women, with prices ranging from Rs80,000 to Rs120,000. A specially-prepared Sherwani costs Rs86,000 at Tariq Road. A sari imported from India costs Rs1,200,000 in the same market.
“These luxuries were never witnessed in the country. The new trend has come from India where rich people indulge in huge spendings on special occasions,” said Mr Abbas.
He also mentioned that Diwali coincided with Ramazan which boosted the shopping spree.
