Reduced retail operating hours: CAP warns of severe economic fallout

LAHORE: The Chain store Association of Pakistan (CAP) has sounded the alarm over the severe economic fallout from recently enforced reduced retail operating hours, warning that the policy is inflicting devastating losses on the country’s formal retail sector while undermining government tax revenues.

Following the first week of implementation, initial data from member retailers reveals a sharp 25 to 30 percent decline in daily revenues, with peak shopping hours between 8:00 PM and 10:00 PM bearing the heaviest blow. The disruption is already translating into estimated business losses of PKR 100 billion per week, while tax generation is falling by up to PKR 25 billion weekly a staggering blow to a sector that contributes approximately PKR 3 trillion annually in sales and income taxes.

The organised retail sector, comprising over 30,000 outlets and supporting nearly ten million jobs, is now grappling with staffing cuts and disrupted inventory cycles. CAP leadership has stressed that comparable urban markets across Asia and the Middle East permit retail operations until at least 10:00 PM, enabling businesses to capture peak consumer demand concentrated in post-work evening hours.

The association has formally appealed to the Prime Minister and Provincial Chief Ministers for immediate policy revision, proposing a 12:00 PM opening with operations permitted until 10:00 PM to balance energy conservation goals with economic sustainability.

Copyright Business Recorder, 2026