Business Groups Urge Review of Early Market Closures

Business associations across Pakistan have formally urged the federal government to reconsider the implementation of early market closure timings, citing material disruptions to commercial activity and substantial revenue losses across key sectors.

The Islamabad Chamber of Commerce and Industry (ICCI), in its representation to Prime Minister Shehbaz Sharif, has recommended that the policy be revisited through a structured consultative process involving relevant stakeholders. The chamber highlighted that the current framework has adversely impacted retail, hospitality, and small and medium enterprises, particularly within the Islamabad region.

According to the chamber, the policy was introduced without adequate stakeholder engagement and has compounded existing economic challenges faced by businesses, particularly by restricting operations during peak commercial hours.

In a parallel development, the Chainstore Association of Pakistan (CAP) has estimated that the policy resulted in an economic contraction of approximately PKR 200 billion within a two-week period following its implementation. The association reported that mandated closure timings of 8:00 PM have curtailed peak evening sales, leading to a 25–35% reduction in daily revenues within the organized retail segment.

CAP further observed that consumer demand patterns have remained largely unchanged, with purchasing activity continuing beyond the prescribed closing hours, thereby diverting business toward informal or undocumented sectors. This shift has reportedly resulted in an estimated PKR 50 billion reduction in tax revenues due to diminished documented economic activity.

Industry representatives have emphasized that the policy’s impact is disproportionately borne by compliant and documented businesses, while informal operators continue to function outside regulatory constraints. Concerns have also been raised regarding the effectiveness of the measure in achieving energy conservation objectives, with stakeholders noting that the commercial sector constitutes a relatively modest share of overall electricity consumption. It was further suggested that reduced commercial activity may inadvertently increase household energy usage, potentially offsetting intended savings.

Broader economic implications have also been highlighted, particularly in light of the retail sector’s role in supporting approximately 10 million jobs nationwide. Reduced operating hours may therefore have adverse consequences for employment levels and income generation.

The Islamabad Restaurants Association has similarly expressed reservations, indicating that the policy has negatively affected restaurant operations and endorsing calls for its reconsideration.

In response, industry bodies have proposed extending retail operating hours to at least 10:00 PM, aligning them with the hospitality sector. Additionally, alternative policy measures—such as the introduction of daylight saving time—have been suggested as more effective means of achieving energy efficiency without undermining economic activity.