Federal government extends business closing hours for summer under austerity measures

ISLAMABAD: The federal government has revised business closing hours under its austerity regime, allowing markets and restaurants to stay open later during the summer season on the grounds of longer daylight hours and rising temperatures.

The decision was taken on Tuesday at a meeting of the Committee for Monitoring and Implementation of Austerity Measures, chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, according to a statement issued by the Deputy Prime Minister’s Office. Under the updated schedule, shops, markets, malls and general retail outlets will now shut at 9pm, while restaurants, cafes and other eateries will be permitted to operate until 11pm. Takeaway and delivery services will remain outside the restriction. Marriage halls and event venues will continue to close at 10pm, with no change in their existing timings.

Essential services have remained exempt from the revised schedule, including pharmacies, hospitals, fuel stations, and IT and telecom-related services. The statement said the committee also asked provincial governments to ensure the guidelines are implemented effectively in coordination with federal authorities.

Those attending the meeting included the ministers for petroleum, climate change, information, and IT and telecommunications, along with the special assistants to the prime minister and the deputy prime minister. Secretaries of commerce, cabinet, petroleum, and IT and telecommunications, as well as senior officials from provincial governments, also participated.

Austerity measures and earlier relaxations

The federal government had announced austerity measures on March 9 following the Middle East war, saying the global energy crisis had worsened because of the closure of the Strait of Hormuz. The same report said Prime Minister Shehbaz Sharif extended the countrywide austerity drive until June 13 on May 11.

The extended measures included a 50 per cent cut in fuel allowance for official vehicles, except for operational vehicles such as ambulances and public buses. 60pc of official vehicles were to remain grounded, while foreign visits by ministers and government officials were completely banned unless considered essential for the country’s interests.

The working week for all government offices had been reduced to four days, from Monday to Thursday, although banks did not avail the additional holiday. The reduction did not apply to the agriculture and industrial sectors, or to essential services such as hospitals and ambulance services. Under the same package, salaries of parliamentarians were to be reduced by 25pc, while employees of state-owned enterprises and government-supervised institutions were to face salary reductions ranging from 5pc to 30pc. Government departments were also subjected to a 20pc cut in expenses, alongside a ban on the purchase of vehicles, furniture, air conditioners and other items.

The federal and provincial governments began imposing restrictions on business operating hours in April as part of energy conservation steps introduced after a sharp increase in domestic fuel prices linked to tensions in the Middle East. Those curbs were temporarily eased before Eidul Adha, observed from May 27 to 29. On May 18, Prime Minister Shehbaz Sharif approved a nationwide exemption from business closure timings until May 31, allowing commercial centres to operate without the earlier restrictions.

The move followed similar decisions by provincial governments. In Punjab, authorities had extended relaxed operating hours for markets and commercial centres until June 1, suspending the mandatory 8pm closure requirement. The Sindh government on May 16 exempted markets, shopping malls, restaurants, hotels and marriage halls from fixed closing hours to support economic activity and provide relief to traders and the public. The Khyber Pakhtunkhwa and Balochistan governments had also withdrawn restrictions on market timings and business hours, ending the earlier energy-saving curbs in those provinces.