Opposition to regulating trading hours in Sindh

Letter October 19, 2016
This proposal is also a very heavy-handed approach to the stated goal of reducing electricity consumption

KARACHI: On September 29, 2016, various news outlets cited the Chief Minister of Sindh’s intention to mandate that all business activity be conducted between the hours of 9 am and 7 pm. In addition to dampening economic activity, the effects of which will bear out in the government’s own cash flow — its impacts will be felt most strongly by marginalised segments of society.

What works for a government department or any given private sector entity will not work in equal measure for all other organisations. Many states/provinces in other parts of the world that used to regulate shopping hours have opted for deregulation. Given Pakistanis’ tendency for shopping after regular business hours, forcibly ending commerce at 7 pm will deprive businesses of some of their most productive trading hours, resulting in less income for hardworking business owners. Small businesses and the working poor, whose livelihoods depend on their ability to sell goods, will be made more vulnerable to indigence.

The gendered lack of mobility during the work day could be the result of a man retaining his family’s only means of conveyance for his commute, or a woman’s reluctance to be in public unaccompanied by her husband or other working-age male relatives. As a result, the only opportunity some women may have to leave the house for chores or recreation is after regular business hours are over. This proposal is also a very heavy-handed approach to the stated goal of reducing electricity consumption from shops operating at night.The government should invest in improving the generation and distribution of electricity to resolve the power crisis rather than suppress the economy to mitigate outages. I recognise that this solution is easier said than done. Even so, I believe there is room for innovative approaches using the proverbial carrot to incentivise reduced consumption. For example, negotiate to offer reduced energy rates to businesses between 9 and 11 am, and raise tariffs on energy consumption after 7 pm.rather than forcing businesses to cease activity. Working with the business community rather than making them feel like the victims of government regulation will result in dividends for all parties, including your own office.

Admittedly, many of my assertions remain unproven until corroborated by data collection and analysis. That said, there was no consultation with representatives of the businesses that may be affected, and there is no supporting evidence to prove that government-mandated shopping hours will be beneficial to individual businesses, the overall economy or everyday citizens. I don’t doubt that business owners themselves would be hungry for this sort of research and would take no issue with adjusting trading hours if there is evidence of the benefits, but the burden of proof to justify this proposal lies with the government. Until rigorous analysis is carried out I would defer to the voices of those who have the most knowledge about their situation and the most to lose from the unintended consequences of top- down governance. Real progress that does not disadvantage or alienate can only come from responsible governance, which necessitates policies anchored in facts, logic, dialogue and the buy-in of the people being governed.

Asad Jan

Published in The Express Tribune, October 19th, 2016.

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