ISLAMABAD – Pakistan’s decision to shut markets early triggered a major disruption in the formal retail sector, with industry estimates revealing sharp 25–30pc collapse in sales across nearly 35,000 outlets.
The move is now being linked to a staggering weekly loss of around Rs100 billion in recorded economic activity, along with shrinking worker incomes, second-shift layoffs, and mounting pressure on nearly 13,000 POS-integrated businesses.
The government introduced earlier closing policy to cut electricity consumption, reduce peak-hour load on the grid, and encourage earlier shopping habits aligned with energy-saving goals and more structured daily routines. Chain Store Association of Pakistan (CAP) has raised serious concerns over its effectiveness.
The new shift timings are eroding tax collections from both sales and income tax while expanding undocumented trade,
He further warned that the expected energy savings are limited, as restaurants, malls, and entertainment venues continue operating late into the night, while more efficient formal retailers are forced to close early. The result, he said, is not reduced consumption—but a distortion of the entire retail structure, with formal sales declining and informal activity rising.
Farrukh proposed three urgent solutions to address the imbalance: extending retail operating hours until 10:00pm to match consumer behavior, synchronizing opening and closing times across retail and entertainment sectors, and introducing daylight saving time by advancing clocks by one hour, which he estimated could generate savings of around $500 million annually.
Several countries including Saudi Arabia, Türkiye, Indonesia, Malaysia, and Egypt keep malls open until 10:00–11:00pm, particularly during peak shopping seasons, suggesting Pakistan’s shorter hours are out of step with regional norms.
He also dismissed fears of panic buying linked to geopolitical tensions. Instead, he said consumers are not hoarding goods but are increasingly downgrading to cheaper brands and lower-quality products due to weakening purchasing power.
Inflation pressures are expected to intensify as April’s CPI to rise to 10.2% year-on-year, compared to 7.3% in the previous month. The average inflation rate for 10MFY26 is estimated at 6.1%, with a 1.8% month-on-month increase expected, per reports.
