CAP urges end to retail timings discrimination, calls for uniform 10pm closure

The trade body says if consumers continue to shop and spend after 9:00 PM in grocery stores, restaurants and other exempt sectors, restricting only clothing, footwear and other non-grocery retail businesses creates a competitive disadvantage for one of the country’s most documented and tax-compliant sectors

LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-June 14^th, 2026) The Chainstore Association of Pakistan (CAP) has welcomed the Government’s recent decision to extend retail operating hours from 8:00 PM to 9:00 PM, stating that the revision acknowledged the practical realities of consumer behaviour, urban mobility and summer temperatures.

However, CAP has urged the Prime Minister, Deputy Prime Minister and Federal Cabinet to adopt a uniform nationwide retail closing time of 10:00 PM, instead of the current policy under which non-grocery retail outlets and department stores remain restricted to 9:00 PM while grocery stores, restaurants and numerous exempt sectors are permitted to operate later.

According to feedback from member brands, the period between 9:00 PM and 10:00 PM contributes approximately 15–30 percent of daily sales for many organised retailers, particularly in major cities where consumers can only shop after work and where high summer temperatures shift commercial activity into the late evening.

“The move from 8 PM to 9 PM is a positive step and demonstrates that policymakers are listening,” said Tariq Mehboob, CAP Patron-in-Chief. “However, the lost hour remains critically important for retailers, workers, suppliers and manufacturers whose livelihoods depend on evening commerce.”

CAP noted that the latest notifications have created unequal treatment across the commercial landscape. While formal retail outlets, shopping malls and department stores remain restricted to 9:00 PM, standalone grocery and kiryana stores are permitted to operate until 10:00 PM, restaurants and food outlets until 11:00 PM, and several sectors remain fully exempt.

The trade body stated that if consumers continue to shop and spend after 9:00 PM in grocery stores, restaurants and other exempt sectors, restricting only clothing, footwear and other non-grocery retail businesses creates a competitive disadvantage for one of the country’s most documented and tax-compliant sectors.

CAP emphasised that organised retail represents only around 10 percent of Pakistan’s broader retail and wholesale trade, yet generates approximately 90 percent of retail-sector tax revenues.

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The sector includes around 13,000 FBR-POS integrated retailers operating more than 35,000 outlets nationwide and supporting over one million livelihoods. Sales tax collected through the FBR-POS system alone reached PKR 414 billion in FY25.

“Formal retailers are being squeezed from both sides,” said Asfandyar Farrukh, Chairman CAP. “The documented sector bears a disproportionate share of taxation and compliance obligations, yet continues to face restrictions that do not apply to many competing sectors and channels.”

CAP further noted that the consequences extend beyond retail. Approximately 60 percent of Pakistan’s manufacturing sector and 20 percent of services feed directly into retail activity. Reduced retail sales translate into lower production, logistics activity, investment and employment throughout the value chain.

The association warned that prolonged restrictions risk weakening one of Pakistan’s most documented and value-added sectors at a time when the country needs greater investment, digitisation, formalisation and tax compliance.

Ahsen Mehmood, Senior Vice Chairman CAP, stated, “Despite over two months of implementation, the actual scale of energy savings achieved through early market closures remains unclear. Policymakers should publicly evaluate whether the measurable benefits justify the economic costs imposed on jobs, investment, manufacturing output and tax revenues.”

CAP also noted that comparable regional economies align retail timings with climate conditions and consumer behaviour, allowing all commercial activity to function normally until 10:00 PM or later.

The association has once again appealed to the Government to adopt a nationally standardised 10:00 PM retail closing framework and undertake a transparent review of the economic costs and energy benefits of the current policy.