Life cannot be put on hold as thinkers grapple to make sense of the destructive choices of elected world leaders in an increasingly anarchic geopolitical landscape. While war zones bear the brunt of devastation, even beyond them, it is often the common citizen who pays the price, through higher living costs, disrupted services, and shrinking economic opportunities.
Pakistanis, like people elsewhere, are bracing for tougher months ahead as household incomes erode and hopes for a stable, positive economic trajectory fade. For many who relied on advances to finance Eid spending, the coming months are likely to be particularly difficult. While distressing images of war and destruction dominate screens, they may offer a grim sense of relief for being removed from countries directly involved.
Business leaders, generally more attuned to practical challenges, are choosing not to dwell solely on the downside in the current situation. Instead, they are actively identifying opportunities amid the far-reaching effects of war on the energy matrix, rising shipping costs, escalating insurance premiums, supply chain disruptions, uncertain export markets and shifting dynamics among Pakistan’s trading partners and competitors.
At the close of Ramazan and Eid — Pakistan’s busiest period in the economic calendar — businesses are now assessing their performance. Drawing on informal market surveys and limited data, this analysis identifies segments that performed well despite challenges and those that struggled despite heavy pre-Eid investment.
Higher duties and a weaker currency have pushed popular international garment brands and personal care products out of reach for many
At the outset, it is important to note that this year, factors beyond companies’ control played a far greater role in shaping both the scale and margins of business outcomes.
Demand for consumer durables, furniture, crockery and premium personal services, such as grooming, tailoring and high-end products, declined sharply this year. In contrast, market sources report a surge in demand for locally produced garments, footwear, and artificial jewellery, with many small retailers completely exhausting their inventories.
“Amid uncertainty and tight budgets, Pakistanis deferred home improvement plans and focused spending on essentials, primarily wearables and limited accessories,” a market observer noted.
Random visits to relatively quiet electronic and furniture markets during Ramazan across Pakistan echoed this trend. Traders had expected a surge in demand for fans, air conditioners, room coolers, and refrigerators as Eid approached summer, but sales remained below expectations despite discounts and promotional offers.
“How could anyone have anticipated such a destabilising war in the region?” a business leader asked rhetorically. “Even if we had, there is little we could do beyond adjusting our marketing as best we could,” he added.
“The market may not have expanded as much as retailers had hoped, but it still favoured large Pakistani brands. Price increases offset lower volumes, keeping bottom lines positive, with many reporting over 10 per cent higher profits than last Eid,” a retail executive said.
Compared to high-end outlets in elite areas, old-city bazaars and neighbourhood shops offered a wider range of products at more affordable prices, attracting significantly higher footfall closer to Eid. Some markets, such as Hyderi in Karachi, reportedly recorded robust sales, outperforming last year by a clear margin.
“The business was strong, with an extraordinary rush of buyers in the week before Eid,” said Akhtar Shahid, a trader’s leader in Karachi Hyderi market. He attributed the surge to recent upgrades that made the area more consumer-friendly and noted a return of shoppers who had previously shifted to trendier malls. “It’s encouraging to see our old customers back,” he added.
Similar feedback emerged from other local markets. An analyst attributed the shift to tighter middle-class budgets, which pushed consumers toward more affordable options over expensive fashion brands.
Market sources report that demand for ready-made garments for adults was significantly higher than for fabric this year. “While many prefer tailored clothing, convenience and pricing pushed consumers toward ready-made clothes. For children, parents have long relied on ready-to-wear options, given the wide range of quality available locally,” a garment trader said.
Except for low-cost Chinese goods flooding the market, demand for higher-end imported items declined sharply, largely due to price gaps. “Higher duties and a weaker currency have pushed popular international brands of garments and personal care products out of reach, even for customers who could previously afford them,” an analyst noted.
In the run-up to Eidul Fitr, prevailing consumption patterns tend to drive a net transfer of wealth from rural to urban areas. Since most producers and suppliers of Eid-related goods are based in urban areas, spending across the country ultimately flows into urban markets.
A source closely tracking State Bank data believes cash withdrawals this Eid season were relatively modest. SBP data shows total bank deposits fell by Rs790 billion in January, partly reflecting pre-Eid withdrawals, bringing deposits down to Rs36.64 trillion from Rs37.43tr in December.
While February deposit data is awaited, early indicators suggest stabilisation. Foreign currency deposits remained largely flat in February at $6.92bn. Roshan Digital Account inflows remained steady at $241.8 million in February, offering some liquidity support.
Published in Dawn, The Business and Finance Weekly, March 30th, 2026