By Irtza Kazmi
KARACHI: Muharram, the first month of the Islamic calendar, holds profound religious significance, particularly for Pakistan’s Shia Muslim community. Beyond its spiritual importance, Muharram also generates a substantial seasonal economic impact across Pakistan, involving diverse sectors such as food, textiles, transport, and religious services. This article explores the estimated size and sectoral breakdown of the Muharram economy in Pakistan, supported by independent and reliable sources.
Overview of Pakistan’s Economic Context
Before delving into Muharram’s economic impact, it is important to understand Pakistan’s overall economic scale: • Pakistan’s GDP in fiscal year 2024-25 is estimated at around $411 billion (approximately Rs115 trillion). • The economy grew by about 2.7% in 2025, reflecting gradual recovery from previous years’ challenges. • Inflation has moderated, and sectors like services and agriculture have contributed to this growth, although industrial output remains mixed.
Estimated Size of the Muharram Economy
The Muharram economy in Pakistan is estimated to generate approximately Rs700 billion in economic activity annually. This figure accounts for expenditures linked to religious observances, food preparation and distribution, clothing, security, and related services during the first ten days of Muharram.
Credibility of the Rs700 Billion Estimate
• The Rs700 billion estimate is supported by expert analyses and case studies from regions with significant Shia populations, such as Muzaffargarh, where local spending on Muharram rituals runs into millions of rupees. • Eurasia Review reports Muharram expenditure at around Rs623 billion, which aligns closely with the Rs700 billion figure when adjusted for inflation and expanded activities. 2 • While no official government report explicitly quantifies Muharram’s economic size, these estimates are widely accepted by economic commentators as reflecting the scale of seasonal spending during Muharram in Pakistan.
Sectoral Breakdown of the Muharram Economy
The Rs700 billion Muharram economy is distributed across multiple sectors, each contributing to the overall economic impact: Sector Approximate Share Description Food & Catering 35-40% (Rs245-280 billion) Large-scale preparation and distribution of food items such as haleem, biryani, sherbet, and langar (free meals). Drives Agro and food processing industries. Textiles & Clothing 15-20% (Rs105-140 billion) Increased sales of mourning attire and traditional garments; boosts textile retailers and manufacturers. Religious Rituals & Gatherings 20-25% (Rs140-175 billion) Expenses on Zakir’s’ fees (Rs300,000 to Rs5 million per Zakir), lighting, sound systems, security, tents, and Imambargah upkeep. Transport & Hospitality 10-15% (Rs70-105 billion) Religious tourism and local travel for Muharram observances; benefits transport providers, hotels, and guest houses. Donations & Charity 5-10% (Rs35-70 billion) Zakat and other charitable donations during Muharram support religious institutions and community welfare. Miscellaneous ~5% (Rs35 billion) Event management, toy carts, security arrangements, and other incidental costs.
Economic Significance of Muharram
• Muharram stimulates economic activity in both formal and informal sectors, particularly in regions with large Shia populations. • The month attracts local and international visitors, boosting the hospitality and retail sectors. • Spending on security and event management is significant due to the sensitive nature of processions and gatherings. • The economic activity during Muharram supports the livelihoods of small vendors, caterers, transporters, textile retailers, and religious service providers.
Comparison with Pakistan’s Overall Economy Indicator Value Pakistan GDP (2024-25) $411 billion (approx. Rs115 trillion) Muharram Economy Rs700 billion (~0.6% of GDP) Muharram Economy Share in GDP Around 0.6% While the Muharram economy constitutes a modest share of Pakistan’s total GDP, its concentrated impact over a short period significantly benefits multiple sectors and communities. The Muharram economy in Pakistan is a substantial seasonal economic phenomenon, estimated at around Rs700 billion annually. It encompasses a broad range of sectors, including food, textiles, religious services, transport, and charitable giving. Although not officially audited, this figure is supported by credible expert analyses and reflects the deep interconnection between religious observance and economic activity in Pakistan.
