KARACHI: Consumer spending in Pakistan during Ramadan and Eid Al-Fitr rose sharply this year, driven by higher retail purchases, food spending and increased travel activity, according to a new report released by global payments company Visa on Wednesday.
The findings offer a snapshot of shifting consumer behavior in Pakistan during one of the country’s busiest annual shopping and travel periods, as inflation pressures ease and digital payments continue to expand across urban consumers.
Pakistan’s economy has faced years of high inflation and slowing consumption following a balance-of-payments crisis in 2022–23, though recent months have seen signs of macroeconomic stabilization and improving consumer sentiment.
According to Visa’s latest Retail Spend Monitor, spending on Visa premium consumer cards in Pakistan increased by 80 percent year-on-year during the Ramadan and Eid Al-Fitr period.
“The Ramadan and Eid Al-Fitr period saw higher spending across travel and everyday retail categories, reflecting both inbound visitor activity and sustained local spending,” said Umar S. Khan, Visa’s country manager for Pakistan and Afghanistan.
The report found that spending by international visitors using Visa premium cards in Pakistan rose 30 percent during Ramadan, particularly among travelers from Saudi Arabia, Canada, Ireland, Turkiye and Italy.
Outbound international travel spending by Pakistani consumers also increased by around 35 percent, with spending to destinations including Saudi Arabia, the UAE and the UK rising 55 percent.
Visa said most Pakistani travelers booked trips closer to departure dates, with 70 percent of travel booked within one month of departure.
The report also highlighted changes in shopping habits during Ramadan, with grocery spending increasing 25 percent in the week before the fasting month compared to the previous week.
During Ramadan itself, spending activity increasingly shifted to nighttime hours, with post-Iftar spending between 9pm and 11pm rising 30 percent and pre-Sehri spending between midnight and 4am surging 85 percent compared to non-Ramadan weeks.
Consumer spending peaked around Eid Al-Fitr, with overall spending during the March 16–19 holiday period increasing 10 percent compared to the preceding days, according to the report.
Retail spending during Eid rose 40 percent while spending on food and quick-service restaurants increased 15 percent.
Visa said the data was based on spending trends observed between Feb. 20 and Mar. 20, using a subset of VisaNet transaction data combined with survey-based estimates for other payment methods.
