Country44 researched factorsپاکستان
Starting a small business in Pakistan (2026): costs, wages, rent, licences
Pakistan at a glance
Compared with India, a Pakistani small shop faces costlier energy in relative terms (commercial power about Rs 45/kWh before taxes, bills loaded with income-tax withholding, gas pressure failures in winter) and fuel and milk prices set by frequent fortnightly/monthly revisions. Tax is collected mainly through withholding on electricity bills and supply chains rather than via a GST registration threshold, and provinces separately tax services (Punjab restaurants pay 16%, cut to 5% if the customer pays by card or QR). The calendar is lunar-Islamic: Ramadan reshapes food businesses for a month, two Eids are the main sales peaks, and Muharram brings security closures. Chai is doodh patti brewed in milk (often with imported Kenyan tea), sold at dhabas and Karachi's Irani/Pathan hotels at Rs 60-120. Tailoring is far bigger than in India because shalwar kameez is still largely stitched to order. Mobile repair and used-phone trade thrive because PTA registration taxes on imported handsets are very high. Lahore's smog orders and Karachi's political or security strikes are frequent, place-specific shocks.
MetroKarachi
Mid-size cityFaisalabad
Small townSahiwal
Pakistan at a glance
Cities used for the three sizes: Karachi · Faisalabad · Sahiwal
| Pakistan | |
|---|---|
| Minimum wage, monthly | Rs 40,000 |
| Unskilled day wage | Rs 1,600 |
| Shop rent, metro (per sq ft/month) | Rs 250Estimate |
| Shop rent, mid-size city | Rs 120Estimate |
| Shop rent, small town | Rs 50Estimate |
| Commercial power, per kWh | Rs45.43 |
| Commercial LPG cylinder | Rs 3,296 |
| Petrol, per litre | Rs 381 |
| Cup of tea / coffee | Rs 80 |
| Simple meal | Rs 250 |
| Men's haircut | Rs 400Estimate |
| Milk, 1 litre | Rs 234 |
| Bread loaf | Rs 170 |
Taxes
| Sales Tax | Federal GST 18% on goods (FBR); provincial sales tax on services and restaurants: Punjab PRA 16% (5% if paid by card/QR), Sindh SRB 15% |
| Small Biz Threshold | No turnover threshold for small retailers in practice: shops pay income tax through withholding on commercial electricity bills; FY2026-27 budget reported a minimum fixed tax of Rs 25,000/yr for shopkeepers with sales up to Rs 20 crore |
| Local Levies | Provincial professional tax on shops/traders (fixed slabs, roughly Rs 500-10,000/yr), TMA/municipal trade licence and signboard fees, extra withholding for non-filers (not on FBR Active Taxpayer List) |
Licences and registrations
Rules vary by state and city: confirm with your municipal office.
| Licences and registrations | Fee | Authority | Source |
|---|---|---|---|
| NTN (National Tax Number) via FBR IRIS, sole proprietor | Free, online, same day | Federal Board of Revenue | iris.fbr.gov.pk |
| Punjab Food Authority licence (food business in Punjab) | Est. Rs 1,000-5,000/yr for small outlets, by category | Punjab Food Authority | pfa.gop.pk |
| Sindh Food Authority licence (food business in Sindh) | Est. Rs 1,000-5,000/yr for small outlets | Sindh Food Authority | sfa.gos.pk |
| Shops & Establishments registration (Punjab Shops & Establishments Ordinance 1969 / Sindh Shops and Commercial Establishments Act 2015) | Est. a few hundred to a few thousand rupees; often skipped by owner-run stalls | Provincial labour department | labour.punjab.gov.pk |
| Municipal trade licence / encroachment permit for carts and kiosks | Est. Rs 1,000-10,000/yr; varies by TMA/KMC | Town/Metropolitan Corporation | Est.: municipal schedules not centrally published; reasoned from typical TMA fee practice |
Festivals and demand
| Festivals and demand | Dates (2026–27) | Effect on trade |
|---|---|---|
| Ramadan | about 8 Feb – 9 Mar 2027 | daytime food sales collapse, iftar pakora/samosa/fruit-chaat stalls boom 4-7 pm; chai stalls open after iftar into the night |
| Eid ul-Fitr | about 10–12 Mar 2027 | tailors' busiest month (orders closed ~10 days before Eid), clothing/shoe/bangle/mehndi demand peaks; most small shops shut 2-4 days |
| Eid ul-Adha | about 16–19 May 2027 | cattle markets, butchers and spice sellers spike; restaurants quiet for days as homes have meat; 3-4 day closures |
| Muharram (9-10th, Ashura) | about 14–15 Jun 2027 | processions, road closures and mobile-network suspensions in big cities; sabeel/niaz free food reduces paid food sales |
| Independence Day | 14 Aug 2027 | flags, badges and green-white merchandise boom for 2 weeks; holiday |
| Wedding season | Nov 2026 – Feb 2027 | tailoring, catering, salons and sweets demand up |
Seasons and weather
- May–Jul · Extreme heat (45°C+ in Sindh/south Punjab), long load-shedding; cold drinks and lassi up, hot tea down at midday
- Jul–Sep · Monsoon floods (2022, 2025) and urban flooding in Karachi/Lahore disrupt street vending and supply
- Oct–Jan · Smog season in Lahore and central Punjab: government orders early market closures, curbs on charcoal grilling (BBQ, tikka) and occasional lockdown days
- Dec–Feb · Cold north: chai, soup, dry fruit, egg and fried-fish stalls peak; gas pressure drops (SNGP/SSGC) push shops to LPG
How people pay
- DigitalShare · Est. under 20% of small-shop sales; cash dominant, JazzCash/Easypaisa and Raast QR growing in cities
- Credit · khata/udhaar common at kiryana stores; buying on credit from wholesalers in Shah Alam/Jodia Bazaar-type markets
Where costs and rules differ most
- Punjab · PRA services tax 16% with 5% card rate; Punjab Food Authority strict; smog-season market closures in Lahore
- Sindh · highest minimum wage (Rs 43,000 from Jul 2026); SRB 15% services tax; Karachi strikes and urban flooding
- Khyber Pakhtunkhwa · KPRA services tax; security risks; cheaper rents; cross-border trade with Afghanistan
- Balochistan · lowest density, frequent highway and internet shutdowns, smuggled Iranian fuel cheaper than OGRA price
- Islamabad Capital Territory · federal ICT minimum wage notification, highest rents, strict CDA encroachment drives
- Gilgit-Baltistan · most federal taxes not applied; subsidised wheat; tourism-season business (May-Oct)
- Azad Jammu & Kashmir · own revenue authority and subsidised electricity tariff since 2024 protests
44 researched factors
JSON · Source · Estimate
| Factor | Typical value in India | Source |
|---|---|---|
| Minimum wage, unskilled (Punjab, 26 working days) | Rs 40,000/month (notified 8 Sep 2025; no 2026-27 Punjab figure found) | fafen.org |
| Minimum wage, Sindh | Rs 43,000/month from 1 Jul 2026 (notified 17 Aug 2026) | wageindicator.org |
| Minimum wage, Islamabad Capital Territory | Reported Rs 40,700/month from 1 Jul 2026 (sources conflict; check gazette) | commoner-law.com |
| Typical shop helper / chai boy pay | Rs 20,000-30,000/month plus meals, often below the legal minimumEstimate | numbeo.com |
| Unskilled daily labour (T2) | Rs 1,500-1,800/dayEstimate | Est.: Rs 40,000 / 26 days = Rs 1,538; … |
| Small shop rent, T1 Karachi (Saddar/Gulshan-type market) | Rs 200-400/sq ft/month; 150 sq ft shop Rs 35,000-60,000 plus pagri (key money)Estimate | Est.: from Numbeo city-centre 1BR rent… |
| Small shop rent, T2 Faisalabad and T3 Sahiwal | T2 Rs 100-150; T3 Rs 40-60 per sq ft/monthEstimate | Est.: scaled from T1 by typical 2x/5x … |
| Pagri (goodwill / key money) for shops in old markets | Lump sum, often 20-60x monthly rent; tenant gets near-permanent occupancyEstimate | Est.: widespread custom in Karachi, La… |
| Commercial electricity base tariff | Rs 45.43/kWh (NEPRA FY2026), plus monthly fuel-cost adjustments (+Rs 0.75 to +Rs 2.52 in 2026) | pakobserver.net |
| Taxes inside commercial power bills | 18% GST, electricity duty, and income-tax withholding (higher for non-filers) add roughly 25-35% to the energy chargeEstimate | profit.pakistantoday.com.pk |
| LPG 11.8 kg cylinder (OGRA official) | Rs 3,296 for Oct 2026 (Rs 3,052 in Sep); market often Rs 100-300 above | pakobserver.net |
| Petrol per litre | Rs 381.14 from 20 Oct 2026 (diesel Rs 389.27); revised fortnightly | app.com.pk |
| Load-shedding hours | 2-8 h/day in high-loss feeders in summer; UPS/solar a common shop capexEstimate | Est.: feeder-based load-shedding polic… |
| Doodh patti chai, roadside dhaba (T2) | Rs 60-100/cup; Karachi hotels Rs 80-120Estimate | Est.: milk Rs 234/L and LPG Rs 279/kg … |
| Milk, 1 litre | Rs 234 (range Rs 180-340; loose milk at low end, packaged UHT at top) | numbeo.com |
| White bread 500 g | Rs 170 | numbeo.com |
| Simple meal (daal chawal / sabzi roti at a dhaba) | Rs 150-300; inexpensive restaurant meal Rs 600 | node2.medicloud.intersales.de |
| Men's haircut, neighbourhood barber (T2) | Rs 300-500Estimate | Est.: no 2026 survey; scaled from wage… |
| Sales tax on goods | 18% federal GST; most small retailers not registered and taxed upstream | fbr.gov.pk |
| Provincial sales tax on restaurants/services | Punjab 16% (5% if paid by card/QR); Sindh 15% | pra.punjab.gov.pk |
| Fixed tax for shopkeepers (FY2026-27 budget) | Reported minimum Rs 25,000/yr for sales up to Rs 20 crore; 1% above | propakistani.pk |
| Tajir Dost retailer scheme | Fixed-tax-per-shop model dropped Jan 2026; FBR now targets retailers by electricity use and returns | profit.pakistantoday.com.pk |
| Filer vs non-filer status | Being on the Active Taxpayer List roughly halves withholding on bank cash, bills and purchases | fbr.gov.pk |
| Business registration for a sole trader | No company registration needed; NTN free via IRIS; SECP only for companies (Rs ~1,000-10,000) | iris.fbr.gov.pk |
| Provincial food authority licence | Mandatory for food sellers in Punjab/Sindh; raids, sealing and fines common in Punjab | pfa.gop.pk |
| Market closing times (energy saving) | Provincial orders periodically force markets to shut 8-10 pm; restaurants exempt or laterEstimate | Est.: recurring federal/provincial ene… |
| Ramadan Ehtiram rules | Eating in public and daytime food sales restricted during fasting hours; eateries screened or closedEstimate | Est.: Ehtram-e-Ramazan Ordinance 1981;… |
| Smog orders, Lahore/Punjab | Charcoal grilling banned without filters, markets early closure, 'smart lockdown' days Oct-JanEstimate | Est.: Punjab EPA smog orders 2023-25; … |
| Mobile phone PTA registration tax | High duties on imported handsets sustain repair and used-phone markets | dirbs.pta.gov.pk |
| Cash vs digital at small shops | Est. under 20% digital; Raast QR, JazzCash, Easypaisa in citiesEstimate | Est.: SBP reports digital dominance in… |
| Customer credit (khata) | Kiryana owners carry 10-25% of monthly sales on credit to regularsEstimate | Est.: same pattern as India's udhaar; … |
| Small business loans | Prime Minister's Youth Business & Agriculture Loan Scheme (subsidised, up to Rs 7.5m), Akhuwat interest-free microloans | pmyp.gov.pk |
| Ramadan demand shift | Daytime food sales near zero, iftar/sehri sales 2-3x normal for a monthEstimate | Est.: reasoned from fasting norms and … |
| Eid ul-Fitr tailoring rush | Tailors earn 30-40% of yearly income in the month before Eid; stitching rates rise 20-50%Estimate | Est.: annual press reports of Eid stit… |
| Heatwaves | May-Jun 45-50°C in Sindh/south Punjab; daytime street trade dropsEstimate | Est.: PMD heatwave alerts most years |
| Monsoon floods | Large floods in 2022 and 2025; urban flooding in Karachi/Lahore closes markets for daysEstimate | Est.: NDMA flood records |
| Strikes, sit-ins, container blockades | Political protests or traders' strikes close markets 1-3 days several times a yearEstimate | Est.: recurring 2023-26 pattern (trade… |
| Mobile/internet suspension | Muharram, protests: mobile data cut in cities, breaking QR paymentsEstimate | Est.: PTA suspensions on Ashura and pr… |
| Fuel/gas price shock | OGRA changes petrol fortnightly and LPG monthly (+Rs 244 per cylinder Sep→Oct 2026) | pakobserver.net |
| Business language | Urdu signage and speech everywhere; Punjabi, Sindhi, Pashto locally; English for paperworkEstimate | Est.: national language policy and cen… |
| Per-capita income | About US$1,800 (FY2026)Estimate | finance.gov.pk |
| Urbanisation | About 39% urban (2023 census) | pbs.gov.pk |
| Chai style differs from India | Doodh patti (tea boiled in milk, little water), Kashmiri pink chai in winter; Kenyan tea imports | artsandculture.google.com |
| Karachi café fuel switch | Aug 2026: tea cafés switched from LPG back to coal due to LPG cost | propakistani.pk |
Business ideas in Pakistan
Our 30 researched guides use Indian numbers. Pakistan-specific guides are being researched; the simulator can already use Pakistan wages and prices.
Chai business177 researched factors
Kirana store180 researched factors
Mobile repair shop188 researched factors
Street food stall178 researched factors
Cloud kitchen166 researched factors
Bakery180 researched factors
Salon or beauty parlour192 researched factors
Medical store161 researched factors
Dairy farm182 researched factors
Car wash183 researched factors
Café175 researched factors
Catering business125 researched factors
Clothing store160 researched factors
Dhaba or fast-food restaurant135 researched factors
Food truck business170 researched factors
Footwear shop158 researched factors
Gym176 researched factors
Hardware and paint shop186 researched factors
Ice cream parlour177 researched factors
Sugarcane juice business173 researched factors
Chicken shop188 researched factors
Optical shop170 researched factors
Paan shop186 researched factors
Poultry farm144 researched factors
Stationery shop164 researched factors
Sweet shop142 researched factors
Tailoring shop or boutique150 researched factors
Tiffin service161 researched factors
Tuition centre200 researched factors
Vegetable shop148 researched factors