Pakistan lifts nationwide business-hour restrictions, exempting shops and restaurants from early closures until May 31

Pakistan lifts nationwide business-hour restrictions, exempting shops and restaurants from early closures until May 31

By Staff Reporter

ISLAMABAD: The government on Monday scrapped early closing times for shops, markets, shopping malls and restaurants across the country, granting a temporary exemption from energy-conservation rules imposed six weeks ago in response to a sharp rise in fuel prices triggered by the US-Israeli war on Iran.

Prime Minister Shehbaz Sharif approved the move with immediate effect, according to a notification issued on Monday by the Cabinet Division. The exemption, which runs through May 31, covers all shops, departmental stores, bazaars, markets, shopping malls, bakeries, tandoors, restaurants and grocery stores, allowing them to operate without the previously mandated closing hours on any day of the week.

The decision aligns the federal government with actions already taken by the four provinces, which had begun rolling back the restrictions last week in response to protests from traders. It comes just days before Eid al-Adha, the three-day Islamic festival that typically brings a surge in commercial activity and is scheduled to begin May 27.

The original restrictions were part of a broader austerity plan aimed at curbing energy consumption after global fuel prices spiked because of disruptions in the Strait of Hormuz. The federal government announced the measures on April 6, ordering markets nationwide — except in Sindh province — to close by 8 p.m. and directing restaurants, bakeries, tandoors, grocery stores and wedding halls to shut by 10 p.m.

Two days later, on April 10, the Sindh government issued its own order, requiring shops, markets and shopping malls in Karachi and other divisional headquarters to close at 9 p.m. It exempted tandoors operating as standalone shops, milk and dairy outlets, bakeries, medical stores, pharmacies, laboratories, clinics, hospitals and fuel stations. Hotels, restaurants and food outlets were permitted to serve dinner from 7 p.m. to 11:30 p.m., while marriage halls and banquets could operate from 8 p.m. to midnight.

The measures drew sharp criticism from traders’ groups, who argued that the early closures were damaging businesses at a time when many were preparing for the Eid rush. Kashif Chaudhry, president of the Central Association of Traders in Pakistan, had called earlier this month for the government to lift the restrictions entirely. Punjab was the first province to ease the rules, announcing on May 15 that all shops, markets, shopping malls, hotels, restaurants and food outlets would be exempt from the prescribed closing times until June 1. The following day, the governments of Sindh, Khyber Pakhtunkhwa and Balochistan followed suit. Sindh and Khyber Pakhtunkhwa withdrew the restrictions without setting an end date, while Balochistan’s Home Department said its order would remain in force until June 1.

Monday’s federal notification effectively extended similar relief nationwide until the end of the month, superseding the April 6 order. The Cabinet Division statement noted that the prime minister had approved the exemption “with immediate effect and till 31st May, 2026,” listing the same categories of businesses covered in the original restrictions.

The energy-conservation drive was introduced last month as domestic fuel prices climbed amid the Middle East conflict, which began Feb. 28 and has disrupted energy supplies through the Strait of Hormuz, a critical chokepoint for global oil shipments. Pakistani officials described the early-closure rules as a necessary step to reduce the country’s reliance on costly imported fuel and to ease pressure on the national grid.

The relaxations reflect a swift policy reversal driven in part by economic concerns. Traders had warned that prolonged restrictions would hurt small businesses and reduce consumer spending ahead of Eid al-Adha, when families traditionally buy new clothes, sweets and sacrificial animals. With the festival less than two weeks away, the government’s decision is expected to allow markets to remain open later, potentially boosting sales during the peak shopping period.

No further details were immediately available on whether the federal government plans to reimpose any restrictions after May 31 or whether additional austerity measures remain under consideration. The Cabinet Division notification made no mention of wedding halls, which had been subject to the 10 p.m. rule in the April 6 order but were not explicitly listed in Monday’s exemption.

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