CAP seeks restoration of uniform 10pm retail closing after govt’s fresh decision to lift austerity measures

CAP has noted that the rationale for restricted market hours was tied directly to the energy-saving drive now being phased out.

LAHORE: (UrduPoint/UrduPoint / Pakistan Point News-June 20^th, 2026) With the Government formally winding down the fuel-saving and austerity measures that had been in place since March 2026, the Chainstore Association of Pakistan (CAP) has urged the Prime Minister, Deputy Prime Minister and Federal Cabinet to extend the same spirit of relief to organised retail by restoring a uniform nationwide closing time of 10:00 PM.

CAP noted that the rationale for restricted market hours was tied directly to the energy-saving drive now being phased out. With that justification removed, the association said retail timing restrictions should be eased in parallel, allowing the sector to recover lost business and contribute fully to the broader economic revival the Government is now signalling.

"The decision to lift the austerity measures is welcome and shows the Government's intent to support economic activity," said Tariq Mehboob, CAP Patron-in-Chief. "Retail should not be left behind. The same logic that justified ending these restrictions elsewhere applies just as strongly to our sector."

According to feedback from member brands, the 9 PM to 10 PM window alone contributes 15–30 percent of daily sales for many organised retailers, particularly in major cities where consumers shop after work hours. CAP said restoring this hour would directly support domestic commerce, jobs and tax revenue at a time when the economy needs every available lever for recovery.

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CAP emphasised that organised retail represents only around 10 percent of Pakistan's broader retail and wholesale trade, yet generates approximately 90 percent of retail-sector tax revenues, with around 13,000 FBR-POS integrated retailers supporting over one million livelihoods. Sales tax collected through the FBR-POS system alone reached PKR 414 billion in FY25.

"Formal retailers have carried a disproportionate share of the burden through this period," said Asfandyar Farrukh, Chairman CAP. "Now that the underlying rationale has been removed, it's time to restore normal market hours and let the sector help drive the recovery the country needs."

Ahsen Mehmood, Senior Vice Chairman CAP, added, "We've supported every reasonable measure the Government has introduced. But with the austerity phase officially over, prolonging retail-specific restrictions no longer serves any stated policy objective — and only holds back domestic commerce when it should be accelerating."

CAP reiterated its appeal for a nationally standardised 10:00 PM retail closing framework, calling it a timely and low-cost step the Government can take to support businesses, employment and consumption as the country moves past the austerity phase.