LAHORE: The Chainstore Association of Pakistan (CAP) has welcomed the federal government’s decision to extend retail operating hours from 8pm to 9pm, saying it reflects a better understanding of consumer behaviour, urban mobility constraints and high summer temperatures.
However, the association has urged the prime minister, deputy prime minister and federal cabinet to adopt a uniform nationwide retail closing time of 10pm, arguing that the current arrangement creates an uneven playing field across sectors.
Under existing rules, non-grocery retail outlets and department stores are required to close at 9pm, while grocery stores, restaurants and several other exempt categories are allowed to operate later.
According to feedback from member brands, the 9pm to 10pm window accounts for roughly 15-30 per cent of daily sales for many organised retailers, particularly in major cities where consumers shop after work and evening temperatures drive activity later in the day.
“The move from 8pm to 9pm is a positive step and shows that policymakers are listening,” said Tariq Mehboob, CAP patron-in-chief. “However, the lost hour remains critically important for retailers, workers, suppliers and manufacturers whose livelihoods depend on evening commerce.”
CAP noted that recent notifications for Islamabad Capital Territory and Punjab have created inconsistent treatment across the retail sector. While formal retail outlets, shopping malls and department stores are restricted to 9pm, standalone grocery and kiryana stores may operate until 10pm, restaurants and food outlets until 11pm, and several other sectors remain fully exempt.
The association said that if consumers are already shopping after 9pm in grocery stores, restaurants and other exempt businesses, restricting only clothing, footwear and other non-grocery retailers creates a competitive disadvantage for one of the country’s most documented and tax-compliant sectors.
CAP said organised retail accounts for around 10 per cent of Pakistan’s broader retail and wholesale trade but contributes approximately 90 per cent of retail-sector tax revenue. It added that the sector comprises about 13,000 FBR POS-integrated retailers operating more than 35,000 outlets nationwide and supporting over one million livelihoods, with sales tax collections through the POS system reaching Rs414 billion in FY25.
“Formal retailers are being squeezed from both sides,” said Asfandyar Farrukh, chairperson of CAP. “The documented sector bears a disproportionate share of taxation and compliance requirements, yet continues to face restrictions that do not apply to competing channels.”
The association added that the impact extends beyond retail, noting that around 60 per cent of manufacturing activity and 20 per cent of services are linked to retail demand. It said reduced sales in the sector translate into lower production, logistics activity, investment and employment across the value chain.
CAP warned that prolonged restrictions could weaken one of the country’s most formalised and value-added sectors at a time when greater investment, digitisation, formalisation and tax compliance are needed.
Senior Vice Chairman Ahsen Mehmood said that despite more than two months of implementation, the actual energy savings from earlier market closures remain unclear.
“Policymakers should publicly assess whether the measurable benefits justify the economic costs imposed on jobs, investment, manufacturing output and tax revenues,” he said.
The association added that comparable regional economies align retail timings with climate conditions and consumer behaviour, allowing commercial activity to continue until 10pm or later.
CAP reiterated its appeal for a standardised 10pm nationwide closing time and called for a transparent review of the policy’s economic costs and energy savings.
