Pakistanis Spending $3.5 Billion on Eid ul Azha in 2016

Pakistanis are spending about $3.5 billion on Eid ul Azha this year, according to analysts. This includes $2.8 billion worth of livestock and another $700 million on clothes,  shoes, jewelry and various services. This amount represent a huge transfer of wealth from urban to rural population in the country.

Animal Sacrifice:

Eid al Adha commemorates the willingness of Prophet Ibrahim (Abraham) to sacrifice his most beloved son Ismail (Ismael) when asked to do so by God. It follows Hajj, the annual pilgrimage of Mecca by Muslims from around the world each year. Muslims believe that God had angels remove Ismael from under the knife of blindfolded Abraham and had him replaced by a lamb.

Economic Activity: 

The commemoration includes sacrifice of cows, goats, lambs and camels on Eid al Azha. This year, the media reports indicate that 4 million goats, 2.7 million cows, 800,000 lambs and 30,000 camels are being slaughtered in Pakistan on the occasion.

Using a conservative average price of $600 per cow, $200 per goat or lamb and $800 per camel, the total cost of animals adds up to $2.8 billion. Various services offered by, transporters, butchers and slaughter houses are in addition to this amount.

Apparel Purchases:

The Eid celebration includes buying and wearing new clothes and shoes as well as women's jewelry and other accessories that add up to another $700 million spent in Pakistan.

Charity:

Animal hides and significant amounts of meat are donated to various charities and the poor on Eid. Charities like Edhi Foundation are big beneficiaries of this largesse.

Rural Economy:

Rural residents who raise animals for sale on Eid bring in billions of dollars into the rural economy. These inflows help provide livelihoods and alleviate rural poverty.

Summary:

Eid al Azha this year represents a $3.5 billion worth of economic activity that is generating jobs and helping the charities and the rural residents of the country.

Related Links:

Haq's Musings

Pakistan Among Top Meat Consuming Nations

Livestock Revolution in Pakistan

Pakistan's Rural Economy

Strong Eid Sales in Pakistan

Happy Eid-ul-Azha: Good Hygiene and Humane Treatment of Animals

Ho Kya Raha Hai - Impact of Eid-Ul-Adha on Our Economy - 12th September 2016

Comments

Anonymous said…
A study by trade organizations puts the total value of Eid shopping this year at Rs 1000 billion (US $ 10 billion).

This trend coincides with a rise in the prices of clothes, shoes and fashion accessories. The prices have registered a 20 percent increase as compared to the previous year.

Economists attribute these trends to both traditional surge in prices and uptick in economic activity related to industrial, services, infrastructure development, domestic tourism, and growth of modern IT sectors. Only this week, Pakistan has found its way back into the category of emerging economies on the back of expanding GDP, robust performance of Karachi Stock Exchange, foreign remittances inflows, and macroeconomic stability.

Discussions with traders and entrepreneurs reveal that the trends bode well for the country, which has to pull large populations in far-off areas out of poverty.

In addition to conventional shopping like clothes, citizens are also purchasing new furniture and home appliances during the Eid season.

Except for high-end brands and the imported commodities, prices are generally stated to be slightly above last year’s level. But the children’s garments are expensive due to rising demand and traditional profiteering on part of sellers.

http://www.samaa.tv/blogs/2016/06/pakistans-eid-shopping-likely-to-touch-rs-1-trillion-mark/
Riaz Haq said…
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), while quoting some estimates, has said that Rs200 billion to Rs300 billion has flown from urban centres to rural areas of the country during the recent Eid festival, which will prove a boon to the farmers and backward regions.

“Some estimates suggest that around Rs200 to 300 billion has been shifted from urban centres to rural areas during Eidul Azha, of which 85% was spent on the purchase of sacrificial animals,” said FPCCI President Abdul Rauf Alam in a statement on Thursday – the third day of Eid.

Over 1,800 land in hospitals in Punjab due to overeating during Eid holidays

He pointed out that Eidul Azha generated great economic activity around the Muslim world and its ballooning size was a very positive indicator for Pakistan’s economy, particularly for the rural economy.

Cattle traders in Pakistan mostly come from rural areas to sell sacrificial animals in big and small cities after rearing cattle for months and even more than a year. “Rural residents, who raise animals for sale on Eid, bring billions of rupees to the rural economy and help alleviate poverty and unemployment,” he said.

“It (Eidul Azha) creates millions of temporary jobs, benefits the jobless, transporters, tanners, textile manufacturers, social and religious groups as well as others.”

It promotes the livestock sector which accounts for 58.5% of the agricultural sector and over 12% of the national economy.

“Crops are going down but the livestock sector is growing 3.6% per year; a little focus can help the country export a significant number of cattle to Saudi Arabia, which will give a boost to the rural economy and bring foreign exchange to the country,” Alam said.

How do Americans and non-Muslims view Eidul Azha?

Saudi Arabia is a huge market for cattle as besides regular consumption in households, hotels, wedding ceremonies and other occasions, millions of animals are sacrificed during Hajj every year.

Pointing out that Pakistan had become world’s fourth largest milk producer, he lamented that lack of value addition was preventing the country from capitalising on livestock sector’s potential.

The FPCCI president was of the view that a large number of people were willing to spend more liberally on the purchase of animals and price movements had failed to deter them. Apart from this, the production of cattle is increasing in the country.

http://tribune.com.pk/story/1182324/eidul-azha-generated-economic-activity-rs300b-flowed-urban-rural-areas/
Riaz Haq said…
#Livestock contributes 11.6%, representing abt 60% of #agriculture output, to #Pakistan GDP http://pakobserver.net/livestock-sector-contributes-more-to-gdp-value/ … via @Pakistan Observer

The livestock sector contributed more to GDP value addition in FY16 than large-scale manufacturing, according to the State Bank of Pakistan’s annual State of the Economy report.
The contribution of livestock was 11.6pc against 10.9pc of large-scale manufacturing (LSM), the report reveals; but the sector itself grew only 3.6pc, below the 4pc level growth it had recorded in FY15.
Since the beginning of this century, the livestock sector has been growing steadily however more growth in the sector has come through value-addition in meat and milk processing and less through increase in animal headcount.
“Between FY01-10 we saw a growth (in the livestock sector) supported largely by milk processing; from then on both milk and meat processing have been fuelling growth,” says a senior official of the Ministry of National Food Security and Research.
Milk and meat production, processing and value-addition have achieved several development milestones over the years. The dairy manufacturing industry, which took root though packaged milk still accounts for 5pc of our total milk production.
The establishment of the Pakistan Halal Authority and a set of incentives including tax exemptions and the reduction in customs duty on the import of machinery for meat processing for setting up fresh abattoirs are expected to further boost livestock growth.
Immediately after the authority started issuing Halal certificates, four meat exporting companies got supply order conformations from Malaysia, a hitherto unexplored meat export market, industry sources say.

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While milk and dairy product companies continue to thrive, mainly on local demand, meat processing firms are more dependent on exports. They are now able to explore new markets after having access to Halal certification facility at home. Previously, they had to get their export consignments certified as Halal from foreign sources.
Fauji Meat a subsidiary of Fauji Fertiliser that commenced operations this April — has come in as a big morale booster. With a daily production capacity of 100 tonnes of meat (85 tonnes beef and 15 tonnes mutton), the company has started exporting both frozen and chilled meat products primarily to Kuwait and a few other countries, officials say. Al-Shaheer Corporation, an old meat exporting company, has not only maintained its market share in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE but its Meat One and Khaas Meat are doing a roaring business in local markets as well.
In addition to selling its meat products through upscale superstores and its own outlets, the company also makes bulk sales to local institutions, including top hotels and restaurants.
Both Fauji Meat and Al-Shaheer Corporation have their own large animal breeding farms to ensure uninterrupted supply of healthy animals for regular slaughtering. The fact that after 2010, meat processing and exports have made real big progress is evident in several developments. First, it was towards the end of 2010 that the All Pakistan Meat Exporters and Processors regrouped as a formal trade association and now boasts 33 registered members engaged in meat exports to GCC nations, Afghanistan and some North African countries.
Second, meat exports have grown rapidly—from 72$m in FY09 to $269m in FY16. Besides, during the current decade local sales of processed meat have taken a quantum leap so that one can find neatly-arranged frozen and chilled primal cuts of red meat in most sizeable superstores in the big cities.

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