Daily Times

The recent leaks about the government’s plan to close utility stores across Pakistan sparked fierce protests from the public. In response to the widespread anger, the government has decided to defer the closure plan for now.

Meanwhile, the Punjab government is moving in a different direction by expanding its model bazaars across the province. These bazaars are designed to provide essential items like fruits, vegetables, and groceries in a friendly shopping environment. To make shopping even easier, motorcycle delivery services have been launched to take items directly to customers’ homes.

Naveed Rafaqat Ahmad, the Punjab Model Bazaars Management Company (PMBMC) chief executive officer, has reshaped the retail landscape since the company’s establishment in 2016. Under his leadership, PMBMC has become a project of self-sustainability in government projects.

He says when he took over the company, he faced challenges.

“My main goal was to create a sustainable business model that could operate independently from government funding,” he said.

“I introduced a new approach, expanding model bazaars to 36 locations across Punjab. This expansion allows the company to offer goods at prices lower than government-set rates, making them more accessible to the public.”

When asked what made the PMBMC a successful model, he said out of several key strategies, first is state land allocation, where the company secured land from the government specifically for establishing the bazaars.

“This partnership has been vital in providing a physical space for vendors and shoppers alike.”

Another important strategy is cost-free land transfer.

“I worked to facilitate the PMBMC with land transfer of the state without any associated costs, ensuring that the financial burden on the project remains minimal.

“This approach allows the bazaars to operate with lower overheads, contributing to their overall sustainability.”

Operational efficiency is another cornerstone of PMBMC’s success.

Mr Naveed says he has focused on creating efficient systems to streamline operations within the bazaars. By optimizing processes, the company can better serve its customers while minimizing waste and improving service delivery.

He also prioritized revenue diversification. This involves introducing various income sources, such as leasing land for attractions and food courts. These additional revenue streams help strengthen the financial stability of the company, allowing it to continue providing affordable goods to the public without relying on government subsidies.

With an annual customer turnover of 60 million, the model bazaars have established themselves as trusted retail destinations in Punjab. However, not everyone agrees with the government’s involvement in retail. Economists like Dr Qais Aslam argue that running grocery stores should not be a government responsibility.

Mr Naveed clarified that PMBMC’s role is to support vendors rather than operate the bazaars directly. “We regulate the show, not run the show,” he states, highlighting the importance of allowing vendors to thrive while benefiting customers.