Eid animal trade largely cash-based
Pakistan is doing the right things at the moment in navigating through a complex and uncertain global trade situation. It has recently announced major tariff reforms, due for the last 20 years. Photo: REUTERS
Despite the federal government providing online payment facilities for the buying and selling of sacrificial animals on the occasion of Eidul Azha, it has been revealed that a large volume of transactions still took place in cash. However, the State Bank of Pakistan (SBP) and various banks facilitated ATM access through mobile vans placed near cattle markets and also enabled online cash services, which led to a significant number of transactions being conducted through banking channels as well. Previously, almost all buying and selling was done in cash, so this shift represents a gradual move towards formal financial channels, though cash remains dominant.
According to state bank sources, Eidul Azha is not merely a festival or a religious obligation, but also represents one of the largest informal economic activities in the country. Around Rs650 billion to Rs700 billion worth of economic transactions take place in Pakistan during Eidul Azha, while approximately another Rs700 billion is injected into market circulation just before the festival, with most of these transactions occurring in cash. The supply chain for sacrificial animals involves livestock farmers, traders, transporters, market operators, fodder sellers, butchers, and individuals associated with the leather industry. The combined estimated value of animal trade and sacrifice during Eidul Azha stands at Rs641 billion.
A conservative estimate suggests that around 7.4 million animals are sacrificed across Pakistan over the three days of Eidul Azha, including cows, buffaloes, goats, sheep and camels. More than 532,000 tonnes of meat is distributed, making this the largest private informal food distribution system in the country. During the Eid days, over Rs400 billion in income is transferred from urban to rural areas, serving as the largest source of income for livestock farmers and rural households. On the other hand, butchers also earn substantial fees per animal during the season, while sacrificial hides provide raw material for the leather industry.