Retailers across the country are struggling as government-mandated early market closures continue to hurt business. Many formal stores now shut by 8pm or 9pm, and the results have been swift and painful.
Shop owners report a sharp 25 to 30 percent drop in sales at around 35,000 retail outlets. Moreover, this policy has caused a weekly loss of Rs100 billion in recorded economic activity. Workers face reduced hours and income, while some businesses have even laid off staff from second shifts. In addition, nearly 13,000 point-of-sale integrated shops now risk losing vital revenue.
Consumers shift to informal markets
However, overall consumption has not fallen. Instead, people simply shop later in informal markets and unregulated areas that stay open late into the night. Asfandyar Farrukh, Chairman of the Chain Store Association of Pakistan, explained that peak consumer demand still arrives after 7pm when people finish work. Yet, because formal retailers must close early, much of this spending moves to undocumented channels. Consequently, the government sees lower collections in general sales tax, income tax, and POS transactions.
Farrukh pointed out that energy savings remain limited. Restaurants, entertainment spots, and malls continue operating, so the expected reduction in peak electricity load has not materialised fully. He suggested practical solutions, including extending retail hours until 10pm to match consumer routines and regional practices in countries like Saudi Arabia, Turkey, and Malaysia.
War tensions add pressure on buyers
Furthermore, the ongoing conflict in the Middle East has changed shopping behaviour. While there is no widespread panic buying that empties shelves, many families with cash are stocking up on essentials fearing price hikes or shortages, especially if the Strait of Hormuz faces prolonged disruption. At the same time, those with tight budgets are switching to cheaper, unbranded items.
Economists expect April’s headline inflation to rise to 10.2 percent year-on-year. Still, retailers hope the government will review these timings soon to protect documented trade and jobs.
