Despite government efforts to promote online payments for Eidul Azha animal transactions, most deals remain cash-based. Learn how banks and state authorities are still supporting formal financial channels.
Despite the federal government’s provision of online payment facilities for purchasing sacrificial animals during Eidul Azha, a significant portion of these transactions continues to occur in cash. However, State Bank of Pakistan (SBP) and various banks have facilitated ATM access through mobile vans placed near cattle markets, enabling more transactions via banking channels.
Eidul Azha is not just a religious festival but also a substantial informal economic activity, with an estimated Rs650 billion to Rs700 billion worth of economic transactions taking place in Pakistan during the occasion. Approximately another Rs700 billion flows into market circulation before the festival, predominantly in cash. The supply chain for sacrificial animals involves livestock farmers, traders, transporters, market operators, fodder sellers, butchers, and leather industry participants.
The combined estimated value of animal trade and sacrifice during Eidul Azha is Rs641 billion, with a conservative estimate suggesting that around 7.4 million animals are sacrificed across Pakistan over the three days, including cows, buffaloes, goats, sheep, and camels. Over 532,000 tonnes of meat is distributed, making this the largest private informal food distribution system in the country.
During the Eid days, more than Rs400 billion in income is transferred from urban to rural areas, serving as the primary source of income for livestock farmers and rural households. Butchers also earn substantial fees per animal during the season, while sacrificial hides provide raw material for the leather industry.
This shift towards formal financial channels marks a gradual move away from purely cash-based transactions but still heavily relies on cash due to its widespread acceptance in rural areas where digital payment infrastructure is less developed.
