The Chainstore Association of Pakistan (CAP) has called for an urgent review of current retail closure timings, stating that the policy is disproportionately impacting the formal, tax-compliant retail sector while delivering insignificant energy savings.
In a formal appeal to the federal and provincial governments, CAP highlighted that the enforcement of early closures -- 8pm across most of the country -- is badly impacting organised retail two weeks into its implementation.
According to industry data, the organised retail sector is experiencing a consistent 25–35% decline in daily revenues, primarily due to restrictions during peak shopping hours between 8pm and 10pm.
CAP estimates that these disruptions have already caused a GDP loss of approximately Rs200 billion across the retail value chain over the last 15 days. At the same time, the government is estimated to have foregone up to Rs50 billion in tax revenues during this period, reflecting the unintended fiscal impact of the current, imbalanced restrictions. The association emphasised that the retail ecosystem, including manufacturers, distributors, and service providers, contributes nearly Rs3 trillion annually through taxes, making it a critical pillar of national revenue generation.
The association clarified that the impact is not uniform across the retail landscape.
Tariq Mehboob, CAP Patron-in-Chief, questioned the underlying assumption that early closure of malls and markets leads to meaningful energy savings. “How much energy is actually being saved? Is it more than the loss to our economy? The entire commercial sector, including offices, accounts for only 8% of total electricity consumption. In practice, shopping malls and commercial areas continue to operate restaurants, food courts, and entertainment facilities until later hours, while reduced retail activity shifts consumption to less efficient domestic usage.”
Asfandyar Farrukh, CAP Chairman, stated: “While we fully support the government’s efforts towards energy conservation, the current approach is misaligned with ground realities. Consumer behaviour does not change simply because shops close earlier. People do not go to work earlier unless a broader shift, such as daylight-savings time, is introduced. Moreover, many other businesses remain open until much later, while malls and prominent markets are forced to shut and turn away customers.”
CAP has proposed practical alternatives, including allowing retail markets to operate until at least 10pm and standardising operating hours across retail and restaurant sectors. The association also urged the implementation of daylight-savings time as a system-wide energy conservation measure that can deliver substantial savings without disrupting economic activity.
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