KP wedding halls lose Rs7bn due to coronavirus lockdowns

'KP's wedding industry will go bankrupt if timely relief is not extended by govt'

PESHAWAR: Wedding halls in Khyber Pakhtunkhwa (KP) have cumulatively lost Rs7 billion in the last six months due to the imposition of coronavirus lockdowns across the province, hall owners claimed on Thursday.

“Although the halls could not function due to lockdowns, huge electricity and gas bills were still handed out to the hall owners, who already had to pay millions in rents,” said KP Hotel and Wedding Hall Association (KPHWHA) President Khalid Ayub while talking to Profit.

It may be mentioned that the government also lost Rs172 million in terms of taxes owing to closure of marriage halls in the province.

Ayub said that the government had promised that closed marriage halls would be given a relief in rent, electricity, and gas bills; however, no such promise was fulfilled.

Now, he said, the government has assured them of a three-year tax break after multiple protests in the federal capital.

“The government promised up to Rs30 million relief in taxes, in addition to interest-free loans of up to Rs500,000 for hall employees, but these commitments have not yet been implemented.”

He pointed out that among 400 marriage halls in the province, only 2pc owners paid 20pc rent while 40pc got a 50pc discount in rent.

“We demand that the government provide immediate relief in electricity and gas bills as promised so that the employment of millions of people in the marriage halls industry can be protected,” Ayub maintained.

Meanwhile, KPHWHA Information Secretary Rahat Akbar Mughal told this scribe that the industry provides jobs to 30,000 direct and 50,000 indirect to people in the province.

He said that the average minimum wage of direct employees working in marriage halls is Rs2.8 billion, adding that they have to take loans from the banks to run their business.

He warned that the industry would go bankrupt if timely relief is not extended by the government.

He said that those most affected by the industry at the moment included traders dealing in meat, beef, poultry, fish, milk, cereals, vegetables and fruits, oil and ghee, tissue, cutlery, and crockery. In addition, flower designers, photographers and video makers, singers, DJs, and music band members were also severely affected financially due to the lockdowns.

According to Mughal, out of 400 marriage halls across the province, if an average of 13 weddings and other ceremonies were held in these halls, the total number of ceremonies would be 5,200 per month, which would generate up to Rs1.04 billion per month.

The total amount received by wedding halls during the last six-month would have been Rs6.24 billion.

He said that the government has announced to open the marriage hall industry after other industries under SOPs but despite the implementation of the procedures, wedding halls are being sealed on a daily basis, causing further losses to the owners.

A bride from Peshawar, Rehana, told Profit that the lockdowns not only harmed the wedding industry and other stakeholders but also those who had planned to get married during the last six months.

She said that costs of having a wedding ceremony increased by 50pc as functions were postponed due to Covid-19.

“My wedding was scheduled for the first week of April. All preparations had been completed. Advance money was also paid for booking the hall but due to the coronavirus, the wedding was postponed,” Rehana said.

Aziz Buneri
Aziz Buneri
Aziz Buneri covers financial, social, political and regional issues for Pakistan Today and Profit. He can be reached at [email protected]

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