Pakistan’s retail sector has received a significant boost following the reversal of the 16% tax on rental properties in Punjab, a policy shift widely welcomed by trade leaders as a critical step toward stabilising commercial activity and easing financial pressures. Industry stakeholders highlighted the development as a milestone achievement driven by coordinated advocacy from organised retail bodies, noting that the move would support thousands of retail outlets and nurture a more sustainable operating environment for businesses.
The announcement and its impact were key points of discussion at the 5th Pakistan Future of Retail Business Summit & Expo 2025, where industry representatives, digital commerce leaders, logistics innovators, and policymakers gathered to examine the evolving retail landscape. The summit emphasised the connection between regulatory clarity, digital transformation, and long-term competitiveness in Pakistan’s retail economy.
Rana Tariq Mehboob, Patron-in-Chief of the Chainstore Association of Pakistan (CAP), underscored the importance of collaboration, explaining that industry unity played a pivotal role in reversing the tax. He noted that this policy burden had strained organised retail operations already coping with high inflation, weak consumer spending, and rising operational expenses. According to him, the decision demonstrates that structured dialogue between the private sector and government can lead to productive economic outcomes.
He further highlighted that the organised retail sector has maintained compliance, resilience, and continued investment despite economic instability, and called for further reforms that strengthen operational sustainability and support technology-driven growth. Mehboob pointed out that modern retail infrastructure and transparent digital systems have positioned Tier-1 retailers as key contributors to documented economic activity.
CAP Chairman Asfandyar Farrukh reiterated the association’s commitment to shaping a forward-looking retail ecosystem that not only survives macroeconomic turbulence but positions itself as a core engine of national economic development. He emphasised workforce upskilling, policy support, and enhanced digital readiness as essential pillars for growth, stressing that Pakistan’s ability to compete regionally will depend on a digitally integrated and professionally trained retail workforce.
Speakers noted that the reversal of rental tax, relaxation of smog-related business restrictions, and withdrawal of uniform signage rules were all products of constructive engagement between business stakeholders and the provincial administration. They urged continued government-industry consultation to ensure policy stability and protect employment in a sector that fuels significant domestic consumption and commercial activity.
Delegates also examined global retail technology trends, highlighting the need for local companies to invest in automation, data-driven decision-making, logistics optimisation, and scalable digital commerce infrastructure. Participants stressed that Pakistan must accelerate its adoption of retail technology to meet changing consumer behaviours and remain competitive in both domestic and international markets.
Industry analysts at the summit concluded that the rental tax reversal serves as an important confidence-building measure, aligning policy direction with the needs of organised business and supporting an economic environment where documented growth and digital retail expansion can thrive.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.