Retailers warn of Rs100 billion weekly losses after reduced shop timings

The Chainstore Association of Pakistan (CAP) has raised concerns over reduced retail operating hours, warning of significant losses for the organised retail sector and calling for a policy review.

The association said early indications from member outlets show a 25–30% decline in daily revenues following enforcement of earlier closing times, with most stores now required to shut by 8pm and 9pm in parts of Sindh and Khyber-Pakhtunkhwa.

Retailers said the restrictions are affecting peak business hours, as consumer footfall typically rises after 7pm, creating a mismatch between demand patterns and operating limits.

CAP said the organised retail sector includes over 30,000 outlets, contributes to the trade sector’s 18% share in GDP, and supports more than one million jobs.

The association estimated revenue losses of up to Rs100 billion per week due to the reduced timings, adding that the impact could also lower tax collection by around Rs25 billion weekly.

It said the retail value chain generates approximately Rs3 trillion annually in sales and income taxes, and a slowdown in activity is affecting overall fiscal contributions.

Retailers also reported operational challenges, including staff reductions and pressure on inventory cycles due to shorter business hours.

CAP noted that similar urban markets in Asia and the Middle East typically allow retail operations until at least 10pm, enabling businesses to capture evening demand.

The association said reduced retail hours may not result in proportional energy savings, as consumption shifts to domestic use, while commercial outlets operate more efficiently and pay higher tariffs.

CAP leadership said the sector is already facing rising costs, including rents and overheads, along with increased regulatory requirements and tax pressures, urging authorities to adopt a balanced approach to support formal businesses.