The government’s decision to shut markets from 8:00 to 9:00 PM has triggered a sharp drop in retail activity. Formal sector sales fell by 25 to 30 percent across 35,000 outlets. Consequently, early market closures cost Rs 100 billion weekly in lost recorded economic activity. Retailers report that incomes have suffered significantly. The policy has also led to layoffs on the second shift. Many workers lost their evening hours.

The government introduced this policy to reduce electricity consumption. Officials wanted to shift shopping to earlier hours. They also aimed to ease pressure on the power grid. However, industry representatives say overall consumption has not decreased. Instead, activity shifted to later hours and into the undocumented economy. Chain Store Association Chairman Asfandyar Farrukh noted that footfall remains high after 7:00 PM. Meanwhile, informal markets continue operating late into the night. Therefore, early market closures cost the government tax revenue as well. Documented sales are falling, so GST and income tax collections are dropping.

Retailers also said energy savings remain limited. Restaurants, malls, and entertainment venues continue operating normally. More efficient retail businesses, however, face forced early shutdowns. The association warned that around 13,000 POS-integrated businesses are at risk. Reduced operating hours and declining recorded sales threaten their survival. To address this issue, industry leaders have proposed extending market hours to 10:00 PM. This would match consumer behavior and regional trends.

Another proposal includes introducing daylight saving time. This could save an estimated $500 million annually in energy costs. Nevertheless, early market closures cost jobs and economic activity right now. Inflation pressures continue building as well. Analysts expect April inflation to rise to 10.2 percent year-on-year. Retailers say weakening purchasing power is forcing consumers toward cheaper products.