The retail and financial sectors in Pakistan witnessed a massive surge in digital transaction activity during the recent Ramadan and Eid-ul-Fitr season, according to the latest data released by Visa. The global payments leader reported that transactions on its premium consumer cards skyrocketed by 80 percent year-on-year, highlighting a significant shift in how consumers in Pakistan manage their finances during peak seasonal periods. This growth was largely fueled by a sharp increase in expenditures across travel, everyday retail, and food-related categories, signaling a robust appetite for both luxury and essential spending among the digital-first demographic.
The data further reveals a notable increase in international interest in the Pakistani market, with spending by visitors from countries including Saudi Arabia, Canada, Ireland, Turkey, and Italy rising by 30 percent. This influx of inbound travel spending on premium cards suggests that Pakistan remains a key destination for overseas residents and tourists during the holy month. Conversely, outbound travel from Pakistan also saw a healthy uptick, with international travel spending on Visa premium cards increasing by approximately 35 percent. Interestingly, travel booking behavior among Pakistanis showed a preference for shorter lead times, with 70 percent of trips booked within just one month of departure, while 65 percent of travelers opted for longer getaways lasting more than three days.
Destinations such as Saudi Arabia, the United Arab Emirates, and the United Kingdom remained the top choices for Pakistani travelers, with spending in these regions increasing by 55 percent. This trend underscores the strong cultural and economic ties between Pakistan and these nations, particularly for religious tourism and family visits during the festive season. Within the domestic market, the week leading up to Ramadan saw a 25 percent rise in food and grocery spending as households stocked up for the month ahead. During the month itself, retail and dining together accounted for a substantial portion of in-store activity, reflecting the traditional shift toward communal eating and gift-purchasing.
One of the most striking revelations from the Visa report is the dramatic shift in the timing of consumer activity. During Ramadan, spending behavior moved significantly later into the night and early morning hours. Post-Iftar spending between 9 pm and 11 pm saw a 30 percent increase, but the most explosive growth was recorded during the pre-Sehri window. Between midnight and 4 am, spending activity surged by 85 percent compared to non-Ramadan weeks, as consumers took advantage of late-night dining and retail opportunities. This nocturnal shift presents a unique opportunity for businesses to adjust their operational hours and marketing strategies to meet the specific needs of the fasting population.
The spending momentum reached its zenith during the Eid-ul-Fitr holidays. Total spending during the Eid period increased by 10 percent compared to the days immediately preceding the festival. While food and quick-service restaurants experienced a 15 percent boost during these days, it was the retail sector that saw the most dramatic gain, with a 40 percent rise in transactions. This peak reflects the deep-rooted tradition of buying new clothes, electronics, and gifts to celebrate the conclusion of the holy month, further cementng the importance of digital payment infrastructure in handling high-volume seasonal traffic.
Umar S. Khan, the Country Manager for Visa in Pakistan and Afghanistan, emphasized that these insights reflect a broader transformation in the local commerce landscape. He noted that the higher spending across travel and everyday retail categories demonstrates both the impact of inbound visitor activity and the resilience of local consumer spending. According to Khan, understanding these shifts in behavior during key seasonal moments is crucial for businesses looking to provide more relevant and seamless commerce experiences. As digital payments continue to gain traction, the data suggests that the integration of premium financial products into the everyday lives of Pakistanis is accelerating, setting the stage for a more digitized and efficient retail economy.
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