Loss of peak trading time hits retail sales

The Chainstore Association of Pakistan (CAP) has urged the government to step in and lift limits on retail trading hours that have been in place since early April. According to The Express Tribune, the group says over five months of shorter trading during busy hours is hurting sales, tax collection, jobs and businesses across the formal retail sector.

In a statement, the association backed energy conservation given the supply and cost pressures that followed recent regional tensions, but argued that fuel savings must be balanced against lost economic output. As an immediate step, CAP proposed allowing retail outlets and malls in Punjab and Islamabad to trade until 11 pm each Friday and Saturday, while restaurants could keep serving later into the night. The aim is a better balance between economic activity and energy saving.

Drawing on earlier reports of weaker formal retail sales when hours were limited, plus the concentration of retail activity in Punjab and Islamabad, CAP estimated a possible weekly hit of Rs45 billion to Rs75 billion in documented retail activity. The foregone tax take for the national exchequer could reach as much as Rs10 billion each week.