Bangladesh’s domestic economy is seeing a boom ahead of the biggest Muslim festival Eid-ul-fitr later this month, with businesses and market experts predicting that more than Tk50,000 crore will be transacted countrywide on shopping for the occasion.
A senior official of Bangladesh Bank told The Daily Observer, “There are ten times more transactions during the Eid celebration compared to normal business. About Tk 3,000 crore to Tk 3500 crore is transected in call money market per day in the banks centering the holy Eid”.
“More than Tk 5,000 crore is transected every day after 15 Ramadan as per bank’s records,” he added.
Officials say there is no statistics available with the government and non-government institutions about Eid market economy But Bangladesh Shop Owners Association (BSOA) makes an approximate estimate of Eid sales in the country every year.
BSOA said, about Tk 35,000 crore will be transected in readymade garments (RMG) market in the current year across the country including Dhaka city which is 15 per cent more than that of the last year. About Tk 5,000 crore will be transected in RMG on the footpath shopping. Besides this, about Tk 10,000 crore will be transected in other sectors.
Zaid Bakht, Chairman of Agrani Bank Ltd and an economist said that the country will receive a lot of remittance from abroad in the run up to the Eid-ul-fitr.
Besides, he said, the garments workers will get about Tk 2,000 crore bonus in Eid and government employees will get more than Tk 700 crore as bonus. This amount will be expended in Eid shopping purposes. Beyond this, huge amount of money would be expended under non-government and private heads.
According to World Bank sources, retail sales in the country reached at more than Tk 90,000 crore during the last two Eid festivals (Eid-ul-Fitr and Eid-ul-Azaha) leading to strong domestic demand and consumption. So, the international lending agency estimates more than Tk 50,000 crore will be transacted in coming Eid-ul-Fitr alone.
Dr Muhammad Abdul Mazid, former chairman of National Board of Revenue (NBR) said that people put on new clothes, children are given gifts and money, and everyone visits relatives and friends.
He said, the Eid ul-Fitr-effect exists about couple of weeks, having an impact on socio-economic arena. Markets for clothes, footwear, cosmetics, jewelry and electronic gadgets witness bumper sales worth hundreds of billion taka in this festive period.
Bangladesh Bank sources said call money rate is rising on the eve of Eid. Commercial banks on Sunday witnessed a heavy rush for money transaction as a huge number of clients withdrew from and deposited cash in the banks, said officials of the commercial banks.
They said banks and non-bank financial institutions made a record of transaction on the call money market on July 2 borrowing collectively 6.5 per cent from the market on the day.
Eid was not celebrated with the same enthusiasm in the long past, because of absence of government patronage, poverty and ignorance about its importance. The festival was mainly about the arrangement of special food and wearing new dresses.
But with gradual improvement of people’s economic conditions, now they celebrate Eid with much pomp and grandeur along with religious rites. So they also spend much more on making the Eid a grand event of the year.