LAHORE: Citing “non-availability of relief from the government”, the Chainstores Association of Pakistan (CAP) has warned of permanent closure of businesses from May 1st.
Speaking to media on Monday, CAP Chairman Rana Tariq said that the imposition of coronavirus lockdowns was destroying the country’s retail sector, making it impossible for retailers to bear the cost of shop rents and employees’ salaries.
“Unfortunately, the government did not announce any relief for middle and lower-class businesses,” he lamented.
Tariq noted that only a few shop owners were following the government’s direction by giving relief to traders in terms of rent waivers.
“From 1st May, all businesses where such incentives are not given would be closed permanently while work would only commence in incentivized areas.
“If the situation persists, jobs of thousands of retail employees would be at risk.”
He said following the imposition of lockdowns across the country, the sector was finding it difficult to procure production material, resulting in cancelation of orders worth billions of rupees.
Later, while talking to this scribe, Tariq informed that the association comprised of more than 200 well-known brands of fashion, foods, supermarkets etc. “Due to the lockdown and the government’s inattention, millions of families are heading towards an economic depression.”
He informed that the retail sector’s losses would surge to Rs900 billion by the time the government opens the sector (on May 10), which would be 50 days after the imposition of lockdown.
“Goods worth about Rs1,500 billion are lying in the warehouses, whereas those worth Rs500 billion are already in production,” he added.
He stated that complete lockdown has also created a severe shortage of capital in the retail sector and that the government “has not taken any action to facilitate local businesses”.
“As a representative of the organized retail sector, we have come to the conclusion that the government has no programme for middle and lower-class businesses that have been striving hard to survive the corona crisis.”
