Pakistan’s Eid Al-Adha shopping season has been severely hit by inflation and heavy taxation, with traders across the country reporting a decline of up to 60 percent in retail sales compared to last year.

Retailers had projected Eid-related business worth Rs400 billion to Rs500 billion this year, while the wider seasonal economy, including sacrificial animal trade, was expected to exceed Rs1.4 trillion. However, weak consumer spending and rising living costs have sharply reduced activity in major commercial centers.

Markets in Karachi, Lahore and Islamabad have seen unusually low footfall during what is normally one of the busiest shopping periods of the year. Traders say consumers are cutting back on purchases as essential expenses such as fuel, groceries, utility bills and school fees continue to rise.

Pakistan’s inflation rate climbed to 10.9 percent in April, up from 7.3 percent a month earlier, driven by higher fuel prices and supply pressures linked to regional tensions involving the United States and Iran.

Business leaders say the slowdown has affected nearly all retail sectors, including clothing, footwear, electronics and festive food items. Many shopkeepers are struggling to sell seasonal stock or recover operating costs ahead of the new fiscal year.

Trader organizations have also blamed strict tax enforcement measures and high interest rates for weakening market activity. Retailers say increasing Federal Board of Revenue monitoring through digital Point of Sale systems has added pressure on businesses already dealing with falling demand.

In Lahore, traders reported that major commercial hubs such as Liberty Market and Al-Latif Center remained far quieter than usual before Eid. Karachi wholesalers and electronics dealers also described a sharp drop in customer activity compared to previous years.

Retail groups warn that continued inflation and declining purchasing power are rapidly shrinking consumer spending, putting further strain on Pakistan’s already struggling retail sector.