KARACHI, April 23, 2026 – The retailers have raised alarm over significant financial losses, estimating a Rs200 billion hit within just two weeks due to early shop closure policies, according to the Chainstore Association of Pakistan (CAP).
In a statement issued on Thursday, Chainstore Association of Pakistan, the representative body of big retailers, said the enforcement of 8:00 PM closure timings for retail outlets is severely impacting organised, tax-compliant businesses while delivering minimal energy savings.
The association urged both federal and provincial governments to immediately review the policy, arguing that it disproportionately affects formal retail chains that operate under higher costs, including rents, payroll, utilities and taxation obligations.
CAP data suggests organised retail has seen a 25% to 35% decline in daily revenue since the restrictions were implemented, with the most significant losses occurring during peak evening shopping hours between 8:00 PM and 10:00 PM. The group noted that consumer activity in major urban centres remains concentrated in the late evening, particularly after working hours.
The association estimated that total economic disruption has already resulted in approximately Rs200 billion in losses across the retail value chain over the past 15 days, alongside an estimated Rs50 billion reduction in tax revenues.
Tariq Mehboob, CAP Patron-in-Chief, questioned the effectiveness of the policy, arguing that the commercial sector accounts for only a small share of national electricity consumption. He said energy savings appear limited compared to the economic cost of reduced business activity.
CAP Chairman Asfandyar Farrukh said consumer behaviour cannot be altered simply through earlier shop closures, noting that parallel sectors such as food and entertainment continue operating beyond restricted hours.
Senior Vice Chairman Ahsen Mehmood added that retail operating patterns in countries such as Saudi Arabia, Malaysia and Turkiye allow extended evening hours, supporting economic activity while maintaining energy discipline.
The association warned that around 10 million jobs linked to the retail sector could be affected if reduced hours continue, potentially leading to lower incomes and layoffs, especially among hourly and shift-based workers.
CAP has proposed extending retail hours to 10:00 PM and introducing coordinated national timing reforms, including daylight-saving measures, to balance energy conservation with economic stability.