Eid rush returns, inflation bites

LAHORE:

The temporary relief given by Punjab, followed by the Sindh government, to keep markets open till late in the evening ahead of Eidul Azha has sparked hopes among traders for a much-needed business revival after weeks of uncertainty caused by rising fuel prices, regional tensions and restricted market timings.

For many retailers, the government's decision to relax market closure timings has come as a sigh of relief. In major cities including Lahore, Karachi and Rawalpindi, commercial centres had been shutting down around 8 pm under energy-saving measures introduced by provincial authorities. Traders argued that the policy badly affected sales in a country where shopping habits are heavily linked with late-night activity, and has caused a cumulative loss of around Rs200 billion.

Pakistan's retail culture largely depends on evening and night-time business. Families usually visit markets after dinner, especially during festive seasons. Shopping malls, clothing outlets, shoe markets, roadside eateries and traditional bazaars often remain crowded until midnight during pre-Eid days.

Retailers say the shortened timings reduced footfall at a time when businesses were already struggling with the weak purchasing power and economic uncertainty.

"The night economy is extremely important for Pakistan's urban commercial structure," said Anis Ahmad, a textile retailer. "Unlike many countries where daytime shopping dominates, Pakistan's major cities become economically active after sunset. Restrictions on business hours directly impact retailers, daily-wage workers, transporters, and food vendors," he added.

Successive governments tried to restrict market timings in a bid to save energy, particularly during initial days of Covid-19, but failed to keep that policy for a longer period. However, the latest pressure came after tensions mounted in the Gulf region that pushed global oil prices upwards amid fears surrounding blockade of shipping routes near the Strait of Hormuz. Pakistan, which heavily relies on imported fuel, immediately felt the impact through higher transport and logistics costs.

Petrol prices and expensive transportation have affected not only traders but also ordinary consumers planning for Eidul Azha. From clothing to groceries and sacrificial animals, prices this year have risen sharply compared to last year.

In cattle markets across Punjab and Sindh, buyers are facing sticker shock. A healthy goat that was available for Rs100,000 to Rs125,000 last year is now being sold for nearly Rs180,000 to Rs220,000 in many urban markets.

"This year, even middle-income families are struggling to arrange money for sacrificial animals," said Shayan Baig, who was looking for an animal for Eid. "No matter whether it's a goat, lamb, or a cow, at least Rs100,000 has been added, if we compare prices with the previous year's rates, which were also higher. I now have to adopt a wait-and-see policy, and will try again close to the Eid in the hope of getting an animal at a lower price."

Livestock traders argue that their own costs have also surged significantly. Transportation charges, fodder prices and inter-city movement expenses have all increased over recent months. Many sellers say bringing animals from rural areas to major cities has become far more expensive than in previous years.

The livestock sector remains a major part of Pakistan's rural economy during Eidul Azha. Thousands of seasonal workers, transporters, fodder suppliers and temporary market operators depend on Eid-related activity for income. Economists believe the festival generates billions of rupees in temporary economic activity every year.

At the same time, inflation continues to shape consumer behaviour. According to the Pakistan Bureau of Statistics, inflationary pressures remained significant during the first quarter of 2026 despite some easing in headline figures. Food items, transport costs and energy-related expenses continue to weigh heavily on household budgets.

In shopping centres, many retailers say consumers are visiting markets but spending carefully. Instead of bulk purchases, families are focusing on essential Eid buying only.

"People still come to markets because Eid is an emotional and religious occasion," said Ahsan Sheikh, a garments trader. "But customers now compare prices much more. Many families have reduced shopping budgets."

Despite these concerns, traders are hopeful that the reopening of markets till late hours before Eid will help improve the sales momentum. Food streets, tea shops and shopping districts have already started witnessing higher activity during late evenings.

Analysts say Pakistan's informal and night-time economy plays a far bigger role than the officially documented one.

Both traders and consumers are hoping that the Eid season will bring temporary relief to an economy where inflation, uncertainty and falling purchasing power continue to challenge everyday life. "Still the footfall is not that great, and we fear that a majority of families will reduce their shopping budget, due to huge inflationary pressures and to compensate for their Qurbani budget," Sheikh added.