KARACHI: In the days before Pakistan’s Independence Day, the streets of Karachi fill with green and white flags, bunting and balloons, but for many women in the city, the national celebration is also a time to step into business — if only for a few days.

Housewives, maids and street vendors set up temporary stalls along busy roads and markets, selling flags, badges, hats and T-shirts to customers celebrating the August 14 holiday.

In an economy where inflation has eroded incomes and steady jobs are scarce, the seasonal rush offers a welcome boost to household finances.

“August 14 is Independence Day, a day of happiness, so we also celebrate our happiness and earn a livelihood for the children,” said Shama Sikandar, a housewife selling Independence Day T-shirts for the first time this year from a roadside stall on Shahra-e-Quaideen.

“Before this, I would just stay at home and do nothing all year.”

She said the sight of other women working outside the home inspired her to try.

“It feels good to be working. I have seen many women even driving rickshaws, some riding motorcycles, some pushing carts, and others doing various jobs to earn a livelihood for their children.”

In Karachi, seasonal vendors crowd key intersections and shopping strips ahead of the holiday, calling out to passing motorists and pedestrians. The sales supplement incomes for women who otherwise rely on low-paying, year-round work.

For 32-year-old maid and mother of three, Saima Babar, the August rush is a planned investment.

From her savings of 30,000 rupees ($105), she buys flags and other celebratory goods to sell on the streets.

“Thanks to Allah, the household runs, we manage one meal a day, and that’s fine, right? My children are doing okay,” she said. “[By selling flags] I manage to save about 10 to 12 thousand rupees ($36–$43).”

Husna, a mother of seven who usually sells pens and keychains at traffic lights in Karachi’s upscale Defense area, shifts her stall to the Sindhi Muslim neighborhood every August.

“On some flags, I earn 20 rupees ($0.07) profit; on others, 30 rupees ($0.11). In this way, I make around 1,200 rupees ($4.30) a day,” she said, before handing over a badge and a couple of flags to a customer.

“Our livelihood is made; there’s enough for bread, water, and lentils. It’s happiness for you, and it’s happiness for us too. Pakistan Zindabad.”

Even women who have been selling for years say the holiday provides a reliable boost.

Sajan Kumar and his wife, Suman, have been setting up a flag stall on Shahra-e-Faisal every August for the past eight years.

“As soon as August 14 arrives, we come here to sell flags,” Kumar said. “It’s a day of celebration. We sell every year. People buy them, celebrate, and also come with their children to stroll around. We manage to save around 10 to 15 thousand rupees ($36–$54).”

Pakistan marks its 79th Independence Day this year under the theme “Marka-e-Haq – the Battle of Truth,” with celebrations beginning on Aug. 1 and running through the month. Across Sindh and Punjab provinces, flag-raising ceremonies, cultural shows, boat parades, marathons, and even donkey cart races have drawn large crowds.

For Babar, the more the merrier.

“The more people celebrate, the more purchases there are, right?” she said with a smile.

KARACHI: Pakistan’s central bank on Wednesday projected economic growth of up to 4.25 percent in the current fiscal year but warned the trade deficit would widen, even as reserves are set to climb on the back of steady remittances and foreign inflows.

The forecast comes as Pakistan implements reforms under a $7 billion International Monetary Fund (IMF) program approved in September 2024, which has helped stabilize the currency, ease inflation and restore investor confidence. The IMF deal is tied to fiscal consolidation, energy sector reforms, and measures to boost exports, part of a broader effort to strengthen macroeconomic stability after years of chronic external imbalances.

The economy returned to moderate growth last year, aided by improved agricultural output, lower global commodity prices, and a series of policy rate cuts totaling 1,100 basis points since late 2024. Inflation has eased from record highs, while the rupee has stabilized against the dollar after a crackdown on the illegal currency market.

“With the policy rate kept unchanged at 11 percent in the MPC meetings in June and July, the MPC expects the real policy rate to be adequately positive to stabilize inflation within the medium-term target range,” the State Bank of Pakistan (SBP) said in its Monetary Policy Report (MPR) released on Wednesday. 

“In the external account, the MPR expects the trade deficit to widen further and, notwithstanding continued expected growth in workers’ remittances, result in a current account deficit of 0–1 percent of GDP in FY26,” it added.

The central bank said “projected financial inflows, coupled with continued SBP interbank FX purchases, would support further buildup in SBP’s FX reserves, which are projected to rise to $15.5 billion by end-December 2025.”

Economic activity, it said, was “projected to gain further traction, with the impact of the earlier reductions in the policy rate still unfolding,” and real GDP growth was expected to range between 3.25 percent and 4.25 percent in FY26.

The MPR also flagged “potential external and domestic risks to the baseline macroeconomic outlook” and included analysis of the lag in monetary policy transmission, comparisons with global central bank decisions, and the SBP’s use of alternative data and machine learning to fill gaps in labor market and agriculture statistics.