Eid in Pakistan: Elites undaunted by inflation while the working class struggles to survive

Rising inflation dampened the joy of Eid al-Fitr in Pakistan, whose economy is considered repressed, according to a Washington-based think tank.

 A man carries a baby while visiting a fair, during the second day of Eid al-Fitr celebrations, in Karachi, Pakistan April 11, 2024. (photo credit: REUTERS/AKHTAR SOOMRO)
A man carries a baby while visiting a fair, during the second day of Eid al-Fitr celebrations, in Karachi, Pakistan April 11, 2024.
(photo credit: REUTERS/AKHTAR SOOMRO)

Pakistan and its neighboring countries, Iran and Afghanistan, along with Saudi Arabia and the other Gulf countries, jubilantly observed the celebration of Eid al-Fitr on Wednesday. 

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This festive holiday, which occurs the day after seeing the new moon of the lunar month of Shawwal, holds significant religious importance for Muslims worldwide as it commemorates the culmination of 29 or 30 days of dawn-to-sunset fasting throughout the month of Ramadan. 

Pakistan's prime minister and president both extended their heartfelt congratulations to the nation while Eid al-Fitr prayers were offered across the country. Eid al-Fitr features a distinctive Salat (Islamic prayer), typically conducted in an open field or a spacious hall, with congregations gathering to participate. 

In the capital, Islamabad, following prayers in the country's largest mosque, Faisal Mosque, Dr. Muhammad bin Abdul Karim Al-Essa, the Secretary General of the Islamic Association, delivered a special sermon.  

But not everyone was joyous during this year's Eid al-Fitr. The majority of Pakistanis feel burdened by the relentless weight of inflation and have found their holiday joy dimmed by the pressing need and worries to pay utility and food bills.

 A woman is reflected in a mirror as she buys artificial jewelry from a shop ahead of the Eid al-Fitr celebrations in Peshawar, Pakistan April 8, 2024. (credit: REUTERS/FAYAZ AZIZ)
A woman is reflected in a mirror as she buys artificial jewelry from a shop ahead of the Eid al-Fitr celebrations in Peshawar, Pakistan April 8, 2024. (credit: REUTERS/FAYAZ AZIZ)

Pakistan is grappling with soaring inflation

With a population exceeding 220 million, Pakistan, South Asia’s largest Muslim country, is grappling with soaring inflation, which has reached its highest level in decades.

Despite the monetary challenges facing most Pakistanis, specifically the lower class and daily wage earners, there exists a segment of society, known as the upper or elite class, that is untouched by concerns about rising prices, diesel costs, or steep utility bills. This well-off community often engages in extravagant shopping excursions ahead of the holidays.

Leading up to this year's Eid al-Fitr festival, these elites visited high-end boutiques and luxury stores, indulging in purchases of upscale designer clothing, accessories, and jewelry. Their purchases reflect a desire for the latest fashion trends and exclusive designer collections to show off during Eid al-Fitr gatherings.  Moreover, they often indulge in lavish gifts for their loved ones and adorn their surroundings with extravagant decorations. Gourmet foods are also prepared to enhance the joy of Eid al-Fitr celebrations.

E-7 is one of the stylish parts of Islamabad, known for its luxurious homes, boutique markets, shopping centers, and restaurants, which are all out of reach for the average Pakistani. Most of E-7's residents here are top government officials, businessmen, politicians, and even foreigners. 

One E-7 resident, Shavez Ali Khan, is the offspring of a retired senior officer from Pakistan's foreign services. Khan attained his master’s degree in business administration from the University of California, Berkeley. Now, he runs a well-settled import-export business in Islamabad and owns a restaurant. 

Khan told The Media Line that he had ordered a special Eid al-Fitr dress for his wife from one of Pakistan's top fashion designers, “at a cost of approximately $2000.” He is hosting a grand feast for the business community at his home during the holiday, and renowned chefs from Islamabad and Lahore have been invited to prepare “a variety of sumptuous dishes.” 

According to Khan, “Wealth bestowed by the Almighty should primarily be directed towards the well-being of oneself and one's family.”

"Matchless luxury Eid shopping"

Another of Pakistani's elite is Rana Saeed Ali, a Faisalabad-based textile mill owner. Ali has two wives and children from both women. Each family resides in a separate luxury villa.

“I ensured that my both families indulged in matchless luxury Eid shopping,” Ali told The Media Line. “We explored the most exclusive boutiques and designer outlets in Faisalabad and Lahore.”

“We selected the finest designer clothing and jewelry for each member of my families, aiming to showcase their impeccable style,” Ali continued. “Furthermore, I also arranged for precious gifts to be delivered straight to our doorsteps, ranging from prestigious timepieces to elusive fragrances sourced from renowned global brands,” he added.

Ali believes that “the Eid festival, besides teaching us to cherish moments with our families, presents an opportunity to support our impoverished and low-income relatives.” 

Meanwhile, most of the rest of Pakistan cannot afford to engage in luxury during the holiday. The surge in inflation in Pakistan has hit families of salaried and middle-class individuals the hardest and has rendered Eid al-Fitr shopping immensely challenging. Whether it's clothing, footwear, cosmetics, bangles, or jewelry, the prices of all commodities have soared, leaving many distressed and disheartened. 

Despite the transition to a new government, recent weeks have seen a surge in the prices of essential commodities such as electricity, gas, petrol, food, and clothing, thereby elevating the cost of daily necessities for the populace. With their purchasing power diminished and the cost of living continuing to soar, families have been forced to cut back on their usual celebratory Eid al-Fitr preparations, including preparing special meals and buying gifts for loved ones, which has dampened the festive spirit that typically accompanies Eid al-Fitr. 

Many parents are finding it increasingly challenging yet necessary to find ways to ensure that their children can still experience some holiday joy.

"We are unable to purchase anything for ourselves"

Muhammed Asad, a paramedic in a government-run hospital who visited Raja Bazaar in Rawalpindi with his wife, told The Media Line: “This time, inflation has doubled or even tripled compared to previous years. Really, we are unable to purchase anything for ourselves, but we have barely been able to buy new clothes and shoes for our children just to fulfill their  joyous expectations, as some essential items remain out of reach.” 

Samreen Jan, a widow and mother of three daughters, one of whom is battling cancer, works as a cleaner to make ends meet. Echoing Asad's desperation, she told The Media Line: “With prices soaring, I can't even think about buying new clothes or making treats for the kids. I'm getting my daughter's expensive [cancer] treatment from some kind-hearted people, but I'm barely managing to pay the rent and bills despite working around the clock.” 

Asad or Jan's story are not unusual; most of Pakistan's people suffer from similar economic hardships as well, largely because of policies that don't promote economic growth.

According to the latest index of the Heritage Foundation, a Washington-based conservative think tank working on policy impact, “Pakistan’s economic freedom score is 49.5, making its economy the 147th freest in the 2024 Index of Economic Freedom. Pakistan is ranked 32nd out of 39 countries in the Asia-Pacific region.”

“Pakistan’s economy is considered 'repressed', according to the 2024 Index,” the report further added.

Saleh Mughul, a Rawalpindi-based analyst told The Media Line, “Despite promises of economic reform and development, the ruling elite's lack of genuine concern exacerbates the challenges faced by the populace, further widening the gap between the rich and the poor.”

“Pakistan finds itself in a precarious economic predicament, with the situation deteriorating notably in recent years and showing no signs of immediate improvement,” he continued. 

“The escalating inflationary pressures, coupled with structural deficiencies and policy shortcomings, pose significant challenges to the country's economic stability and growth prospects,” Mughul added, asserting that “as the nation grapples with these formidable obstacles, it becomes imperative for policymakers to address the root causes of economic distress and implement effective measures to alleviate the burden on the populace and steer the country towards a path of sustainable development and prosperity.”

According to Hazar Khan Baluch, a Quetta-based analyst, “In a nation where poverty rates are already high and exacerbated by current economic challenges, it is imperative for the state to prioritize a fundamental aspect of policymaking and governance.” 

Baluch underlined the “urgency for the government to initiate interest-free loan schemes tailored for unemployed youth and to swiftly adopt policies aimed at fostering the growth of small industries and entrepreneurship.”

“Promoting small industries and entrepreneurship will not only create employment opportunities but also stimulate economic growth and innovation. Therefore, implementing such measures promptly is essential for addressing unemployment and fostering economic development in the country,” Baluch concluded.