Retailers across Pakistan are reporting a loss of Rs100 billion in just one week following the government’s decision to enforce early market closures.
The Chainstore Association of Pakistan (CAP) has warned that cutting retail hours has triggered a 25 percent to 30 percent drop in daily revenues. According to the trade body, the restriction hits businesses during their peak hours. Most consumers in urban centers visit shops after work, typically between 7pm and 10pm. With shops forced to shut by 8pm in most regions and 9pm in Sindh and KP, retailers claim there is a “structural mismatch” between the law and how people actually shop.
The financial fallout extends beyond shop counters. CAP estimates that the decline in trade could slash tax collection by Rs25 billion per week. Currently, the retail value chain generates Rs3 trillion annually in sales and income taxes. Association members point out that while they contribute significantly to the trade sector’s 18 percent share of the GDP, the current pressure is making operations unsustainable.
“Pakistan’s organised retail sector is already facing multiple constraints, including rising costs, particularly fixed rents and overheads, increased regulatory actions and a lopsided tax burden on tier-1 retailers,” stated CAP Patron-in-Chief Rana Tariq Mehboob.
The association also questioned the logic behind energy saving. They argue that commercial buildings are more energy efficient and pay the highest electricity tariffs. Closing them early may not reduce overall consumption, as energy use simply shifts to less efficient domestic settings.
The impact is already hitting the workforce. Retailers report that they are starting to cut staff and reduce inventory cycles to stay afloat. Representing over 30,000 outlets and a million jobs, the sector is now urging the government to rethink the timings.
