The spirit of giving |
The holiest month in the Islamic calendar is also the most dynamic season for consumer markets across Muslim-majority countries.
In Pakistan, household spending rises sharply as families prioritise better-quality food and prepare for Eidul Fitr. For those constrained by affordability, support from relatives, government programmes, and individual/charitable organisations help bridge the gap, reinforcing the Ramazan spirit defined by spirituality, generosity, festivity, and a heightened culture of caring and sharing.
Estimates suggest that an average Pakistani household’s monthly budget rises by around 40 per cent during Ramazan, with kitchen spending increasing by nearly 50pc. These projections are broadly supported by consumer-behaviour studies conducted by various organisations, including the State Bank of Pakistan.
“In an economy where GDP growth barely keeps pace with population increase, tax rates are among the highest in the region, and markets suffer from persistent governance weaknesses, the prospects for a meaningful rise in real household incomes and expenditures remain slim,” an economist observed. “That raises a critical question: how has a projected 40–50pc spike in Ramazan spending been sustained amid such strains?”
Charitable donations in Pakistan have grown faster than the broader economy over the past decade
Charitable donations in Pakistan have grown faster than the broader economy over the past decade
He cautioned against reading too much into visible commercial bustle. “In the world’s fifth most populous country, with sluggish development and limited infrastructural, crowded roads and packed markets may reflect demographic pressure and daily survival, rather than genuine gains in purchasing power,” he argued.
In Pakistan, the dominance of the informal economy and the limited availability of rigorous, publicly accessible market research mean there is no comprehensive dataset to clearly trace the sources of additional Ramazan spending.
However, ample indirect evidence suggests a steep market surge in Ramazan. Above normal cash withdrawals from banks, higher remittance inflows, special Ramazan and Eid relief packages, and a significant rise in cash and in-kind assistance from individuals and non-governmental organisation, corroborated by market participants, government officials and researchers, all point to a tangible boom in retail and wholesale activity during the holy month.
Feedback from digital-market analysts reinforces the perception of a pronounced Ramazan surge in activity, though gains are not uniformly distributed across all fintech platforms. AppsFlyer, a global mobile analytics firm, recently observed online. “Across Southeast Asia and Pakistan, Ramazan remains a powerful convergence of culture, connection, and commerce, increasingly unfolding through mobile phones.
“Consumers browse, buy, and give through their screens, blending tradition and technology in their shopping, streaming, and spending habits.”
The data suggests that Ramazan’s commercial intensity is now as visible in the digital ecosystem as it is in physical markets.
“In Pakistan, household spending typically increases by around 40pc above routine levels during the holy month, as festive demand boosts retail and online activity,” the analytics firm added.
According to private sector estimates, the number of bank card-based transactions remained broadly unchanged over the past three years, even as e-commerce activity through digital wallets and mobile apps has grown markedly.
“Digital wallet and mobile app transactions are not always captured in a consolidated, publicly accessible dataset, which makes it difficult to accurately track changes in volumes or conduct comparisons,” said Mutaher Khan of Data Darbar. He thought the perception of a significant year-on-year surge in consumer activity as overly optimistic.
Retailers and leading departmental store chains declined to share sales data to substantiate claims of shifting market dynamics. They nonetheless reported a sharp rise in footfall and a noticeable increase in overall business volumes in February 2026 compared with January 2026 and February 2025.
“Alongside new customers, our existing clients are spending more on premium kitchen items and placing bulk orders for ration packages for families they support,” said a floor manager at a busy Karachi outlet. “We offer multiple packages designed for households of seven, and customers choose based on how many families they intend to help according to the budget they have set aside. It’s not just business; it’s heartening to see truckloads of ration packages being dispatched to underprivileged communities.”
Commenting on the given trends and their link to macro indicators, The Layton Rahmatullah Benevolent Trust General Manager, Tahir Abbasi, said that while he lacks empirical datasets, sector experience suggests charitable donations in Pakistan have grown faster than the broader economy over the past decade.
He noted. “Larger charities have evolved into highly professional institutions with governance, fundraising, and communication structures comparable to the corporate sector, often posting double-digit growth despite economic slowdowns.
“Early Ramazan indicators point to another robust cycle, driven by data-driven campaigns, and stronger diaspora engagement,” Mr Abbasi said.
Published in Dawn, The Business and Finance Weekly, February 23rd, 2026
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