Retail sector calls for extending business hours

Stakeholders claim retail segment is on verge of collapse

LAHORE:

The retail sector of Pakistan has urged the government to extend business hours till 12 midnight, citing that it is on the verge of total collapse.

Stakeholders of the sector highlighted that reduced business hours during Ramazan were impacting their revenues.

Keeping in view the rapid increase in Covid-19 cases in the country, the National Command and Operation Centre (NCOC) issued guidelines, specifically for Ramazan, which restricted timings for retail markets from 6am to 6pm for five days a week.

On weekends, no retail and wholesale market is allowed to function.

Different business associations are now appealing to the NCOC to reconsider the timings for markets and malls in order to ensure continuity and sustainability of businesses.

They claimed that reduced retail timings, till 6pm on weekdays and closure on Saturdays and Sundays, had led to a drastic contraction in business activity to less than half compared to sales in Ramazan in previous years.

A number of other factors also dealt a blow to the retail sector and it was now on the brink of collapse, they said.

Chainstore Association of Pakistan (CAP) Chairman Tariq Mehboob pointed out that during Ramazan a majority people did not step out during the day and preferred to shop in the night. Similarly, the citizens having jobs and household duties were only able to shop late in the night, hence early closure of retail markets deprived them of the opportunity to shop and prepare for Eid, he said.

“Retail businesses have invested billions of rupees in the merchandise to be sold during the Eid season and due to a complete lockdown last year, a few shops are still selling the inventory bought 12 months ago,” he said.

“Furthermore, businessmen may be unable to pay for supplies due to low sales and early closure can adversely affect liquidity of over 70 allied sectors including manufacturing, cottage industry, wholesale and dozens of other upstream businesses.”

Additionally, the businessmen may default on payment of fixed expenses of shops including rent, salaries and overheads, which will have a knock-on effect on the economy. He voiced fear that tax revenues might drop sharply due to reduced activity of retail and allied businesses.

Lahore Chamber of Commerce and Industry President Mian Tariq Misbah said that business activities normally soared during Ramazan, however, reduced business timings would have an adverse impact.

He said that short business hours would increase crowd in markets, which would enhance the risk of contracting Covid-19.

He emphasised that the government should reconsider its decision and allow businesses to remain open until midnight in Ramazan.

Published in The Express Tribune, April 21^st, 2021.

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