Religious tourism, animal sacrifice drive $7.8bn economic boost in Pakistan

July 18, 2024 (MLN): Pakistan's religious tourism and animal sacrifice sectors, along with related exports, contribute a substantial $7.8 billion to the economy annually, Khurram Schezad, CEO of Alpha Beta Core revealed in his report titled "From Rituals to Riches: Eid-ul-Adha’s Untapped Economic Potential in Pakistan."

This figure includes an estimated $3.5bn spent on outward religious tourism and $3bn on sacrificial animals. The earnings from these sectors are also significant, with meat exports generating $427 million and leather products exports bringing in between $750m and $950m.

The report also focused on annual sacrificial spending and the associated economic value-added potential for Pakistan.

Pakistan ranks among the top five nations in terms of the number of animals sacrificed during Eid ul-Adha.

In Pakistan, the practice of animal sacrifices during Eid-ul-Adha holds profound cultural and religious significance. Beyond its spiritual importance, this tradition represents a significant economic opportunity that remains largely untapped.

Consider these staggering numbers: Annually, Pakistan spends billions on outward religious tourism and animal sacrifices alone.

In 2024, the country’s estimated expenditure on Hajj, Umrah and Ziyarat collectively stood at $3.5 billion (with Umrah having 57% share, and second highest globally in Hajj and Umrah visitors), while that on sacrificial animals is estimated to be Rs700bn ($2.5bn), a substantial figure that underscores the economic scale of the religious tradition.

Further, if the expenses incurred on transportation of these animals, their feed and expenses on slaughtering are added, then the amount spent increases by 20% further, reaching Rs840bn ($3bn). 

The economic impact of animal sacrifice alone extends beyond mere spending. The leather industry, heavily reliant on animal hides, benefits immensely from this annual ritual. Eid-ul-Adha alone accounted for 37% of the total demand for hides, translating into billions of rupees in revenue for the value chain.

The potential doesn’t stop there; through proper processing and value addition, the value of hides can increase exponentially, leading to a thriving export market for leather goods, the report added.

However, the current process is far from optimal. Informal slaughter practices, often conducted on streets without proper facilities (hardly any civilized country allows such a practice by the public doing it themselves on the roads and streets), lead to significant losses in both quality and economic potential.

Inexperienced handling of hides further diminishes their value, affecting not only local industries but also potential exports, the report highlighted.

The report suggests that the induction of technology and relevant skills if developed properly through a policy framework by the government, can turn this industry into a multi-billion-dollar export industry from Pakistan.

Therefore, the solution lies in modernization and formalization. By establishing state-of-the-art slaughterhouses and introducing advanced processing techniques, Pakistan can not only improve the quality of its hides but also ensure a cleaner, more efficient process.

This transformation would not only benefit the leather industry but also create employment opportunities and attract foreign investments eager to capitalize on Pakistan’s meat and leather potential.

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