LAHORE: Restaurant industry is facing collapse due to early closure restrictions. 4 pm closure time is against the ground realities therefore the government should enhance the timings immediately.
These views were expressed by the LCCI President Mian Abuzar Shad while talking to the delegation from the Lahore Restaurants Association at the LCCI in the presence of Vice President Shahid Nazir Chaudhry and former Senior Vice President Ali Hussam Asghar.
The delegation, led by Nisar Chaudhry, discussed the grave challenges being faced by the restaurant sector. The delegation expressed serious concerns over the government’s decision to enforce an early closure timing of 4 PM, describing it as “unacceptable” and a direct threat to the survival of their businesses.
The LCCI President Mian Abuzar Shad underscored the severe financial impact of the restricted operating hours, stating that the limited time frame has led to significant waste of perishable and frozen goods. “This policy is increasing the operational burden on businesses, which are already struggling to manage expenses, including rent that constitutes more than 22% of their total costs,”
he said.
The delegation members pointed out the broader implications of the crisis, warning that billions of rupees invested in the restaurant sector are now at risk. They explained that each individual working in the restaurant industry supports the livelihood of at least five family members, underscoring the potential ripple effect of widespread unemployment should this sector collapse.
The LCCI President and the delegation said that the closure of restaurants is not just a blow to business owners but also to the government, which stands to lose significant tax revenues. Daily wage workers, who depend on restaurant jobs for their survival, are facing the brunt of these policies, leading to an increase in unemployment. “The government should realize that this sector is a key contributor to the economy, providing both direct and indirect employment opportunities. Shutting it down for extended hours is counterproductive to the goal of economic revival,” the delegation added.
Mian Abuzar Shad also challenged the rationale of blaming restaurants for smog and environmental pollution. Citing data, they noted that 83% of pollution in smog is attributed to vehicular traffic, while restaurants account for less than 1% of the total share. He urged the government to focus on more significant contributors to pollution rather than imposing restrictive measures on a sector that is already struggling.
LCCI President Mian Abuzar Shad assured the delegation of the chamber’s support and promised to raise the issue with higher authorities. “The restaurant industry is not just a source of livelihood for millions; it is also a crucial part of our cultural and economic fabric. The government must adopt a more balanced approach to ensure this sector’s survival and growth,” he remarked.
Vice President Shahid Nazir Chaudhry and former Senior Vice President Ali Hussam Asghar expressed similar sentiments and emphasized the importance of implementing policies that promote business activity rather than stifling it. LCCI office-bearers urged the government to reconsider the restrictive timings and adopt a collaborative approach to address environmental and economic challenges. They called for immediate consultations with stakeholders to devise solutions that protect the restaurant industry while meeting environmental goals.
Copyright Business Recorder, 2024
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