Pakistan Energy Crisis: Islamabad Orders Markets to Close at 8 PM Amid Rising Fuel Costs

Islamabad has ordered earlier closing times for markets and eateries from June 1, 2026, as Pakistan tries to save power and money amid the conflict in West Asia, where rising fuel costs are adding fresh pressure on the country’s already fragile economy.

The district administration, led by deputy commissioner Irfan Memon, said on social media that markets must now close at 8 pm every day, while restaurants, grocery shops, bakeries and other food outlets are allowed to serve customers until 10 pm under the revised schedule.

Pakistan energy crisis and new operating hours in Islamabad

Detailing the move on X, the administration stated: "The District Administration Islamabad has enforced revised business operating hours under ongoing austerity measures, effective today (June 1, 2026). Markets, shops and shopping malls will close at 8:00 PM, while restaurants, grocery stores, bakeries and other food outlets will operate until 10:00 PM," it said on X, outlining the rules.

The post further clarified the wider scope of the curbs by adding: "Marriage halls, marquees and other event venues will also close at 10:00 PM. Essential services, including pharmacies, hospitals, petrol pumps, dairy shops, sports facilities, call centres and IT companies serving international clients, remain exempt from the restrictions."

Pakistan energy crisis linked to conflict in West Asia

Authorities linked these steps to an austerity drive triggered after the US-Israeli attack on Iran in March sent fuel prices sharply higher worldwide, prompting Pakistan to cut electricity use through earlier shop closures and tighter rules on public gatherings, including events held on private properties.

The US-Israeli war on Iran, which started on February 28, has unsettled West Asia and disrupted energy flows after Tehran blocked shipments through the Strait of Hormuz, a narrow channel that normally carries about one-fifth of global oil and natural gas supplies, much of it heading towards Asian importers.

Pakistan energy crisis impact on markets and traders

Pakistan depends heavily on oil and gas moving through Hormuz to meet domestic energy needs, and although some Pakistani tankers still sail during the crisis, cargoes now arrive at higher cost because energy prices have climbed globally, fuelling inflation and straining the country’s already weak external finances.

The squeeze on fuel-importing Asian economies has intensified, with governments, including Pakistan’s, pushed into urgent measures to defend currencies and limit damage to growth, even as local traders complain that markets usually start around midday and stay open late, leaving many business owners reluctant to accept shorter working hours.

The Islamabad restrictions, first tried in March and now reinforced, also cover social functions at private venues, while essential services such as hospitals, pharmacies, petrol pumps, dairy outlets, sports facilities, call centres and IT companies serving foreign clients continue operating, as officials try to balance public needs with reduced energy consumption under the austerity plan, with inputs from agencies.