LAHORE: The Chainstore Association of Pakistan (CAP) has urged the government to extend retail operating hours to 10pm, warning that continued enforcement of early market closures is causing significant economic and fiscal losses, particularly ahead of Eidul Azha.
The appeal follows nearly a month of restricted operations, with the organised retail sector reporting a consistent 25-35 per cent decline in daily revenues. Retailers say the drop is largely due to the loss of peak shopping hours between 8pm and 10pm.
Industry representatives argue that the policy does not reflect ground realities. In major cities, consumer activity usually begins after 7pm due to work routines, traffic congestion and extreme summer heat. As a result, retailers are often forced to turn away customers around 7:45pm to comply with the 8pm closing deadline.
The timing is particularly sensitive, as businesses have already stocked inventory in preparation for Eidul Azha. CAP warns that prolonged restrictions could lead to significant losses in seasonal sales, placing additional financial pressure on retailers already struggling with rising costs.
The association also highlighted the fiscal impact of the policy, estimating that reduced retail activity is leading to notable losses in documented economic output and tax collection. According to CAP, the Federal Board of Revenue (FBR) has indicated that early closures have already contributed to an estimated Rs20 billion decline in tax revenues, with losses continuing to mount.
“The data shows this policy is not changing consumer behaviour; it is distorting it,” said CAP Patron-in-Chief Tariq Mehboob. “People still shop in the evening due to heat and routine, but many are shifting to informal markets that remain open longer. This reduces documented sales while offering little in terms of energy savings.”
Retailers say uneven enforcement is worsening the situation. While organised, tax-compliant outlets strictly follow closing hours, informal businesses and other sectors often continue operating beyond the deadline. This imbalance, CAP argues, is unfairly penalising compliant retailers that already face higher fixed costs, including rent, utilities and salaries.
The pressure is beginning to translate into operational challenges. Industry officials report reduced staffing levels, particularly for second shifts, along with growing concerns about potential layoffs if the current trend continues. Some businesses may face closure if revenue losses persist.
CAP also pointed to wider economic implications. Retail is closely linked to other sectors, with around 60 per cent of manufacturing output and 20 per cent of services tied to retail demand. Any sustained slowdown, the association warned, could trigger ripple effects across production, supply chains and employment.
At the same time, CAP questioned the effectiveness of early closures in achieving energy conservation goals. The commercial sector accounts for a relatively small share of overall electricity consumption, while malls, restaurants and entertainment venues often continue operating beyond retail closing hours.
“Urban retail depends on consumers who can only shop after work,” said CAP Chairman Asfandyar Farrukh. “The current policy ignores this reality and is effectively shutting down retail during peak hours.”
CAP has proposed a more balanced approach, recommending a uniform closing time of 10pm to align business activity with consumer patterns while still supporting energy management objectives. Without a timely revision, the association warns, the policy risks causing long-term damage to businesses, employment and government revenues.
