PESHAWAR, Sept 27: There is still a buzz in shopping centres ahead of Eidul Fitr as if all is well in this part of the country. Shops illuminated with colorful lights, displaying traditional outfits and footwear, are as attractive as like they were before. But the difference this time is that very few are genuine buyers in these markets.

“Yes, the rush in the market is as usual, but the problem is that majority of the people are window-shoppers,” says Sharafat Ali Mubarik, a garments’ dealer at Jinnah Street, Peshawar’s one of major shopping centres, adding “Around 80 per cent visitors are teenagers, who come to the markets just for fun not for shopping.”

Worsening law and order in the Frontier Province and soaring cost of food and utility are the prime factors which, according to Mr Mubarik, have plummeted Eid sales by almost 60 per cent if compared to last year’s.

Almost 70 per cent areas of the NWFP have been affected by the ongoing militancy and counter-militancy campaign launched by the security forces that ultimately damaged seasonal businesses of Peshawar, which serves as main supply hub for adjoining districts including Mardan, Charsadda, Kohat and Nowshera.

Security situation in these adjoining districts and its fallout on provincial metropolis is one of the major factors, which keeps real buyers away from the market, informs Mr Mubarik, saying “people don’t want to come out of their homes.”

Electronic media, he says, is also adding to the problem by harassing the people to stay away from the markets, saying “When TV channels are airing news about the possible suicide attacks on busy places of major cities, then you should expect that anybody will come to markets.”

Skyrocketing increase in the prices of food and utilities is also affecting the Eid business. Shopkeepers say upward trend in the prices of daily use items is not a new phenomenon, as prices remained on the higher side for the last couple of years, but the trickle down effect of county’s poor macroeconomic conditions have made things worst this time.

“Households are even unable to run their kitchens, so what can they spare for luxuries such as shopping for Eid,” questions Jan Muhammad, another garments dealer at Liaqat Bazaar Peshawar.

“I have couple of regular clients, who would usually buy three to four suits on Eid, but now they have reduced only to one because of high cost of food,” explains Mr Muhammad.

Regional Institute of Policy Research and Training (RIPORT), a Peshawar-based consultancy firm, recently compiled a study to ascertain the impact of both food and non-food price hike following the Feb 18 general elections, which suggest that people are finding it extremely difficult to spend on festivities.

The study says during last six months the prices of food items have increased by 32 per cent, while non-food items including kerosene oil, petrol and diesel by 120 per cent in Peshawar, adding “Households in Peshawar have reduced the volume of food intake, changed its pattern and slash down spending on traditional ceremonies such as weddings and social gatherings because of these soaring food and oil prices.”

The low income group up to Rs8,000 per month is the worst hit because of increase in the prices of food items, says the study.

For example, it explains households from low level income group are paying 60 per cent more than they had paid six months back for wheat. Similarly, the low middle income group is paying 62 per cent, middle income group 51 per cent and high income group is bearing an increase of 35 per cent during the same period.

The people are coping with the rising food and non-food prices with different strategies among one is reducing expenditures on social gatherings such as weddings, engagements and birthday parties etc.

The price hike has impacted almost each income group, as according to study 80 per cent of the households in Peshawar have decreased the money they spend on food, cloths and jewellery for bride and other entertainment activities.

The soaring oil prices and unabated power outages have significantly increased the cost of production of textile industry, which ultimately have impacts on retail markets in shape of high prices for inferior quality goods.

Ayaz Khan, a whole sale dealer of fabrics and readymade garments, says the manufactures could not produce special Eid products this time because of power outages, as they are supplying mostly old stock that is also a contributing factor for people reluctance to shop.

“Our salesmen are very good at attracting clients but they need something new to market, which did not happen this time,” laments Mr Khan.

Even though the soaring food prices have affected the commoners’ monthly budget, business can be revived, if the security situation is improved, opines Shan Elahi, a footwear dealer in Peshawar.

He says shoes-business has been reduced by 85 per cent because of closure of main consumer markets of adjoining tribal areas and some settled districts of the province, which are inaccessible because of counter-militancy drive launched by the security forces.

“If the peace is restored in these violent-stricken areas, our business will revive; otherwise, the shopkeepers are no more in a position even to pay their monthly rents,” opines Mr Elahi.