Record Inflation in Pakistan Affects Eid al-Adha Camel Sales

As Pakistan prepares for the annual festival of Eid al-Adha, farmers and traders at livestock markets are facing challenges due to the country’s soaring inflation, which reached a record 38 percent in May. This economic strain is particularly evident in markets near the capital, where sellers like teenager Amanullah Khan and his cousin Zakaria are struggling to attract customers for their camels.

Eid al-Adha, set to begin on Thursday, traditionally involves the slaughter of animals such as goats, sheep, bulls, or camels. The meat is divided into thirds: one for the family, one for friends and relatives, and one for charity. This festival commemorates the willingness of Ibrahim (Abraham in Christian and Jewish faiths) to sacrifice his son as an act of obedience to God.

This year’s festival is marked by a notable decline in purchasing power among Pakistanis. Zakaria, who brought 18 camels to market hoping for sales similar to last year’s, has only managed to sell one. The high prices of animals are deterring potential buyers like Ali Akbar, a 46-year-old builder, and Zerak Ali, a 56-year-old shopkeeper, who find the costs prohibitive.

Camel sacrifices are less common in Pakistan but are preferred by some wealthier buyers due to Islamic rules allowing the meat to be shared among 11 families. The Islamabad market alone has over 250 camels, along with thousands of bulls, cows, goats, and sheep, with prices ranging widely based on the animal.

Zakaria faces additional financial pressures from market taxes, rising costs for fodder and truck rentals, and staff wages. He anticipates significant losses this year.

Amidst these market challenges, Pakistan is in a crucial phase of securing a financial package from the International Monetary Fund (IMF). The country recently implemented policy adjustments, including a revised budget and an increase in interest rates, in hopes of securing funds under the Extended Fund Facility program initiated in 2019. Finance Minister Ishaq Dar mentioned working on a mechanism to ensure Pakistan receives the full $2.5 billion, not just the approximately $1.1 billion due under the current review.

Reports suggest discussions about a new short-term standby arrangement (SBA) worth $2.6 billion with the IMF. This financial support is critical for Pakistan, not only for addressing its immediate needs but also for unlocking other funding avenues.

The situation reflects the broader economic challenges in Pakistan, where the devaluation of the rupee and inflation are impacting everyday life, including traditional practices like Eid al-Adha celebrations.

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