The number of Pakistani families participating in Eid-ul-Azha festivities by sacrificing cattle individually or collectively has continuously been increasing, ballooning the size of the country’s Eid economy.

The demand for sacrificial animals has largely been inelastic to prices.

Some attributed the curve to increasing religiosity in society while others consider it to be an indicator of a growing middle class that is conservative or affluent and likes to compete in displaying its rising economic prowess in order to scale the social ladder.

“The economic opportunities that the occasion throws up generate a commercial interest and lead to innovative arrangements … with the aim of squeezing the maximum from aspirants”

“It would be incorrect to attribute the width and depth of the sacrificial animals market in Pakistan exclusively to the religious inclination of people. The socio-cultural pressures in a Muslim society also play a part.

“The economic opportunities that the occasion throws up generate a commercial interest and lead to innovative arrangements. These are set up to capitalise on the phenomenon with the aim of squeezing the maximum from aspirants by enticing them to spend many times more than what they can comfortably afford”, said a student of behavioural economics arguing that the trend has a direct relationship with relative prosperity and the perception of economic turnaround.

“The Eid-i-Qurban market has expanded. Yes a lot of money flows in from overseas Pakistanis who prefer to fulfill their religious obligation back home, probably to maintain connection with their roots.

“There is no denying the fact though that a greater number of locals are inclined to spend more liberally and the overall price movement fails to deter them”, a market watcher observed.

According to reports based on the Pakistan Tanners Association, over 10m cattle heads (2.5m cows, bulls, buffaloes, 7.3m goats, 80,000 sheep, 30,000 camels) worth Rs250bn will be offered for sacrifice during the three day festival.

What the nation spends on shoes, clothing, accessories, grooming, transport, hospitality, fridge and freezers, etc. is in addition to this.

The current Pakistan Economic Survey confirms that the total production of cattle has been increasing in the country, with growth rates varying for cow, goat, camel and sheep.

There is a moderate increase in prices, close to the average inflation rate of under five per cent.

The average countrywide price for a cow this year is projected to be Rs60,000, goat Rs15,000 and camel Rs70,000.

“The grumbling of buyers is misplaced. I don’t think prices have hiked much. The profit margin of breeders is about the same as last year as the price increase is proportional to increase in the cost of investment”, Riaz Rind, a commercial cattle farmer from interior Sindh, who considered returns unfairly low, told Dawn in Karachi.

Among the services offered on the occasion, butchers take a lead with scores of untrained or semi trained people entering the market to match the steep spike in demand. Over time their price for services has increased manifold.

To deal with cartels of trained butchers, in many localities residents or municipal committees arrange service camps for better bargains.

A lot of make-shift sale points to sell cattle feed and accessories required for qurbani prop up at every other street corner, manned by people not necessarily related to the business.

In apartment complexes and in areas where households lack space or support staff to keep and care for animals, empty plots are used to establish make shift care centres equipped with guards, caretakers and veterinary services for safe keeping of private animals. The beneficiaries share the cost of camp maintenance.

Eid special bazaars are set up all over the country where many brands introduce special schemes and sales.

The retail sale of meat remains depressed during the Eid week and many butcher shops close for a long annual holiday.

“The cattle business is central but the occasion spikes demand for all kinds of goods and services as people loosen their purse strings during long Eid holidays. The total Eid market is estimated to be worth several hundred billions with the cattle business claiming a high 85pc share of the total spending on the occasion”, said a businessman.

Beside regular cattle breeders and big businesses operating in the field, the ballooning Eid economy in Pakistan generates opportunities for retail investors wanting to roll their capital in short term avenues. No firmed up data is available in support but people say scores of young professionals form small groups, pool in capital and directly, or indirectly through agents, partake in the cattle business by investing for a month or two.

The returns are said to be 50pc and above though the risk is high. “I lost all my money in 2012 as the animal farm was devastated by floods. Last year I chipped in Rs200,000 with a group of nine other friends to back a cattle breeder in Bhawalpur who needed liquidity to organise the marketing of his herd. I was aware of the risk but the amount was not big and expected returns high. It turned out great as besides a 50pc profit I was able to strike a good deal for goats for myself and my extended family. What I earned covered my total Eid spend”, a young banker told Dawn.

Published in Dawn, Business & Finance weekly, September 12th, 2016