Govt’s energy saving plan to cause 30pc losses in retail business: APTMA

ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) on Tuesday rejected a government’s energy saving plan by closing markets earlier, saying the plan would result in economic losses of up to 30 percent in the organised retail business.

Closing markets at 8:30pm during peak business hours would result in massive losses and also layoffs of skilled workforce, and eventually reduced tax collection, the association wrote in a letter to the Federal Minister for Commerce Syed Naveed Qamar.

“Peak hours for most organised retailers are between 7pm and 10pm (except for festivals and special events) generating 25-30 percent of the total revenue during these 3 hours,” the letter read. The association urged the government to fix the timing for the retailers at a minimum 10pm every day for the entire year.

APTMA argued that it has members that operate thousands of branded retail outlets in major markets and shopping malls across the country and the members are tax-compliant “Tier-1 retailers” integrated with the FBR-POS system contributing greatly to the formal economy of the country.

“The organised retail sector generates employment of over 2,000,000 people directly and indirectly, including shopping malls, manufacturers, service providers, cottage industry, etc,” it said.

The letter explained that effective commercial tariff of Rs65-70 per unit (including taxes) with a high recovery rate to be compromised in favour of half the electricity charges paid by customers staying at home at subsidised domestic tariffs of Rs20-30 per unit, if excessive restrictions on retail were applied. “Hundreds of thousands of families shut off their home lights, fans, and air conditioners when they visit shopping malls and major retail markets, where less energy per person is consumed because energy-efficient lighting and cooling/heating technologies are installed.”

Wholesale and most retail shops in smaller markets and secondary cities already close by 8pm.

Only organised retail, i.e. branded stores, superstores and department stores on high-streets and in shopping malls are severely impacted by any excessive restrictions on timings and their enforcement, according to APTMA.

The letter emphasised that the working public in urban/semi-urban areas return home from work by 7pm and later go out with their families for shopping, dinner, etc. for which they require 2-3 hours.