Khaadi CEO Compares Retail Sector in COVID-19
In his interview with Kamran Khan on Samaa TV, Khaadi CEO Shamoon Sultan discussed the ongoing issues facing the retail sector locally due to COVID-19.
In his interview with Kamran Khan on Samaa TV, Khaadi CEO Shamoon Sultan discussed the ongoing issues facing the retail sector locally due to COVID-19. The nation’s exporters are bearing losses as they earn revenues worth billions of dollars through international orders from US and UK. In many cases, their orders have either been held back, postponed or canceled.
Pakistan Retail Industry vs Globally – Analysis by Khaadi CEO
“E-commerce globally is highly developed as compared to Pakistan, abroad the online sales contribution is about 30% or more while here it’s a mere 7 to 8%,” says Sultan.
Khaadi CEO also added in that the most profitable months for the retail sector in Pakistan are between March and August, since the two Eids fall during this time, 14th August, and the summer season that is longer and entails most buying. Almost 50-60 % of annual sales are made during this time frame.
This year however, due to the COVID-19 pandemic, the retail sector has been impacted negatively and the next three months or so are just for survival.
He mentions the revival of tourism industry after the pandemic is over is our ticket to survival, comparing to the UAE he adds, “People visit Dubai, to visit their malls, for shopping purposes and to visit cafe’s and eat good food. We have it all in Pakistan but it all simply needs organisation and these malls, stores and 100’s of cafe’s are the future of tourism in the country.”
How can the Government help the Retail Sector?
Shamoon stated in his interview, “Pakistan has everything it needs to become self-sufficient, it just needs help from the government to get there.” The CEO of Khaadi also suggested three policies for the government to implement to help the retail sector during the COVID-19 pandemic.
- Solve Liquidity Issues
The retail sector needs high liquidity to take care of all its operations. The State Bank of Pakistan should implement policies to provide the sector with loans that will help the industry survive the COVID-19 pandemic, according to the Khaadi CEO. “It is not just the exporters who have taken a great hit but us, the retailers, as well.”
- GST Reductions
Last June sales tax went from 6% to 17% – before COVID-19, the industry was in negative 10% . If not a complete reduction, government needs to give incentives for the unorganised retailers to document and integrate themselves at a lower rate so that the base can expand for the government.
- Encourage Localisation through Incentives
Shamoon Sultan believes the country needs to move towards complete localisation and perceives COVID-19 as a great opportunity for it. Incentives must be offered at lower rates for more enterpreneurs to come into the market and further localisation to take place. “We can easily be self-sufficient, as we have a 220 million population. Along with that we have our own resources, our own textile, our own construction.”
You can watch the video of the interview below:
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