Loss of peak trading time hits retail sales

Association estimates restrictions suppress business activity by Rs45-75b

LAHORE:

The Chainstore Association of Pakistan (CAP) has called for urgent government intervention into restrictions on the retail operating hours continuing since early April, warning that more than five months of curtailed peak trading time is taking a toll on sales, tax revenue, employment and businesses across Pakistan's formal retail value chain.

In a statement, CAP acknowledged the energy supply and cost pressures facing the country following the recent escalation in regional tensions and supported the need for prudent conservation. However, it stressed that energy and fuel savings must be weighed against the economic value being lost through prolonged curbs on productive commercial activity.

As an immediate measure, CAP proposed that all retail shops and shopping malls in Punjab and Islamabad be permitted to stay open until 11 pm on Fridays and Saturdays, with restaurants further late in the night, to better balance economic activity and energy conservation.

Based on previously reported declines in formal retail sales during restricted trading hours and the concentration of documented retail activity in Punjab and Islamabad, the association estimated that the restrictions could be suppressing Rs45-75 billion in documented retail activity every week, with the corresponding loss to the national exchequer potentially reaching up to Rs10 billion per week in foregone tax revenue.