CAP urges permanent 10 pm retail timings after Eidul Azha relief

CAP says temporary relief has helped restore commercial activity, consumer convenience and business confidence after nearly five weeks of restrictive operating hours that disrupted the broader economic ecosystem linked to retail activity

LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-May 22^nd, 2026) The Chainstore Association of Pakistan (CAP) has welcomed the temporary extension in retail operating hours granted during the Eidul Azha period and urged the Prime Minister and Federal Cabinet to adopt a permanent, nationwide 10:00 PM retail closing framework before the temporary relaxation expires.

CAP stated that the temporary relief has helped restore commercial activity, consumer convenience and business confidence after nearly five weeks of restrictive operating hours that disrupted the broader economic ecosystem linked to retail activity.

The association emphasised that the impact of early closures extended far beyond retail outlets alone, affecting manufacturers, logistics providers, transporters, shopping malls, service providers, SMEs, warehouses and thousands of workers connected to evening commercial activity across the country.

According to CAP, approximately 60 percent of Pakistan’s manufacturing sector and 20 percent of the services sector feed directly into retail activity, making retail throughput a critical driver of broader economic continuity, industrial demand and employment generation.

“The temporary Eid relief has demonstrated that balanced retail timings till 10:00 PM are both workable and economically sound,” said Tariq Mehboob, CAP Patron-in-Chief. “The issue is no longer limited to retailers alone. The economic impact extends across manufacturing, services, logistics, shopping malls and employment throughout the value chain.”

CAP noted that the documented retail economy contributes substantially to national tax revenues. According to an official Senate disclosure, the retail sector contributed approximately PKR 1,017.8 billion in tax collection during FY2024/25, including PKR 628.3 billion in income tax, while sales tax collected through the FBR-POS system reached PKR 414 billion.

The organised retail ecosystem currently includes approximately 13,000 POS-integrated retailers operating over 35,000 outlets nationwide and supports more than one million livelihoods directly and indirectly.

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CAP estimates that the earlier 8:00 PM closure restrictions caused approximately PKR 500 billion in cumulative economic disruption, while the FBR reportedly informed the National Assembly Standing Committee on Finance that tax collection losses from the value chain had already reached approximately PKR 20 billion during the initial weeks of implementation.

CAP warned that reverting to 8:00 PM closures after Eid-ul-Adha would sharply increase the risk of mass layoffs among second-shift retail employees and manufacturing workers linked to retail demand. Many businesses retained staff during the temporary relief period in the hope that timings would normalise; reinstating early closures would force employers to reducetens of thousands of workers, cut production and reassess outlet viability.

The association further noted that despite the significant economic disruption, questions continue to arise regarding the actual scale of energy savings achieved through early market closures. CAP stated that a broader national discussion is needed on whether the economic costs imposed on documented sectors are proportionate to the measurable energy benefits achieved.

“Businesses, workers and consumers all benefit from balanced, predictable and standardised nationwide timings,” said Asfandyar Farrukh, Chairman CAP. “Pakistan’s urban consumer economy naturally functions later in the evening, particularly during summer months and in major cities where consumers can only shop after work.”

CAP also pointed out that comparable regional economies, including Saudi Arabia, the UAE, Türkiye, Indonesia, Malaysia and Egypt, generally maintain retail timings until at least 10:00 PM in alignment with climate conditions, urban mobility patterns and evening consumer behaviour.

The association encouraged policymakers to consider longer-term structural energy management measures, including daylight saving time and broader energy-efficiency reforms, as more sustainable and less disruptive alternatives.