Retailers seek extension in market closing time to 10pm before Eid al-Adha

The Chainstore Association of Pakistan has urged the government to extend retail operating hours to 10 pm, saying early market closures are reducing sales, affecting employment and lowering tax revenues ahead of Eid al-Adha.

The association said organised retailers have faced a 25-35% decline in daily revenues over the past month due to closure deadlines that restrict business during peak shopping hours between 8 pm and 10 pm.

According to retailers, consumer activity in major cities usually increases after 7 pm because of office timings, traffic congestion and high summer temperatures. Businesses said they are often forced to stop serving customers before 8 pm to comply with the closure deadline.

Retailers said the timing of restrictions has increased pressure on businesses that have already stocked inventory for Eid al-Adha sales.

The Chainstore Association of Pakistan stated that prolonged restrictions could lead to further losses in seasonal sales and create additional financial stress for retailers dealing with higher operating costs.

The association also raised concerns over the fiscal impact of reduced retail activity, stating that documented economic activity and tax collection were being affected.

According to the association, Federal Board of Revenue estimates indicate that early market closures have already contributed to around Rs20 billion in lower tax revenues.

Chainstore Association of Pakistan Patron-in-Chief Tariq Mehboob said consumers continue shopping in the evening despite the restrictions, but many are shifting towards informal markets that remain open longer.

He said the trend was reducing documented sales while offering limited benefits in terms of energy conservation.

Retailers also pointed to uneven implementation of the policy, saying organised and tax-compliant businesses are following the restrictions while many informal businesses continue operating beyond the deadline.

Industry officials warned that falling revenues were beginning to affect staffing levels, particularly second shifts, while concerns over layoffs and business closures were increasing.

The association said retail activity supports around 60% of manufacturing output and nearly 20% of the services sector, warning that a prolonged slowdown could affect supply chains, production and employment.

Chainstore Association of Pakistan Chairman Asfandyar Farrukh said urban consumers generally shop after office hours and the current policy was affecting retail activity during its busiest period.

The association proposed a uniform market closing time of 10pm, arguing that it would better align with consumer behaviour while still supporting energy management goals.