Early Market Closures Are Costing Rs. 100 Billion a Week and Mass Layoffs

The government’s decision to shut markets from 8:00 to 9:00 PM has led to a sharp drop in retail activity, with formal sector sales falling by 25 to 30 percent across 35,000 outlets, reported Dawn.

Retailers say this has resulted in a weekly loss of around Rs. 100 billion in recorded economic activity, while also impacting incomes and leading to layoffs on the second shift.

The policy was introduced to reduce electricity consumption, shift shopping to earlier hours, and ease pressure on the power grid.

However, industry representatives say overall consumption has not decreased, but instead shifted to later hours and into the undocumented economy. Chain Store Association Chairman Asfandyar Farrukh said footfall remains high after 7:00 PM, while informal markets continue operating late into the night.

This shift is reducing documented sales and lowering tax collection, including general sales tax and income tax from point of sale systems.

Retailers also said energy savings remain limited, as restaurants, malls, and entertainment venues continue operating, while more efficient retail businesses are forced to shut early.

The association warned that around 13,000 POS integrated businesses are at risk due to reduced operating hours and declining recorded sales. To address the issue, industry leaders have proposed extending market hours to 10:00 PM to match consumer behavior and regional trends.

They also suggested aligning operating hours across retail, restaurants, and entertainment sectors to avoid distortions. Another proposal includes introducing daylight saving time, which could save an estimated $500 million annually in energy costs.

The development comes as inflation pressures continue to build, with analysts expecting April inflation to rise to 10.2 percent year on year, up from 7.3 percent in the previous month.

Retailers say weakening purchasing power is already forcing consumers to shift toward cheaper and lower-quality products, even as fears of price increases grow due to global tensions.