MARKET ANALYSIS

EID ECONOMY REGAINS LOST GROUND

The multi-billion rupees Eid market that shrunk to half in 2020 covered much of the lost ground this year. Last year economic slump and the lockdown curbed Eid related businesses. Improved economic conditions, social distancing fatigue and the religiosity triggered by pandemic fears converged to mobilize people at the holy festival. In the absence of firmed up data, it is hard to project the actual size of the Eid ul Azha economy but careful estimates put it in the vicinity of Rs175 billion up from Rs100bn in 2020. “There is consensus that total Eid business has surged in 2021,” Asif Javed, a seasonal investor who partake in cattle business with a close group of friends’ told. A source close to the Pakistan Tanners Association said 6.5 to 7 million animals are sacrificed this year with the share of cows almost equal to goats for the first time. Suppliers gauged the trend and increased the supply of cows. Prices of big animals increased moderately by 5-10 per cent but goats were pricier by 25-30pc this year, he said The composition of cattle business seems to be changing with buyers’ preference for cows. The surge in demand for sacrificial animals in cities drove the prices up. The share of the livestock sector that promise high returns has persistently been rising in the rural economy. The leather industry is hoping to do better this year. “More than half of skins and hides are wasted every year in Pakistan. This year we leveraged social media to educate public on a simple ways to save the precious resource. We are hoping to curb the level of wastage and procure hides worth Rs18-20bn,” said  Syed Shujaat Ali, a leading leather garment exporter.