The federal government is all set to bring down the shutters on the Utility Stores Corporation, with July 31 marked as the final day of operations. Once considered Pakistan’s essential state-run retail chain for low-cost consumer goods, USC is now heading toward full-scale closure and privatization. This move, reportedly initiated on the orders of Prime Minister Shehbaz Sharif after a high-level meeting on June 28, is expected to reshape the country’s subsidized retail sector.
As part of this restructuring, a Voluntary Separation Scheme (VSS) has been rolled out for all USC employees. Those not covered by the scheme will face transfers to a surplus pool, or in the case of daily wagers and contract staff, outright dismissal. According to sources, nearly 2,800 contractual employees from grades 1 to 13 are expected to be let go, while 2,237 daily-wage workers have already been sacked. This aggressive downsizing aligns with the IMF’s demand to right-size the Utility Stores Corporation under economic reform agreements.
Mass Closures, Staff Cuts, and Privatization Ahead for Utility Stores Corporation
The Ministry of Industries, along with the Privatisation Commission, is managing the USC wind-up plan. Loss-making outlets will be permanently closed, while others, roughly 1,500 out of the original 5,500, are expected to be handed over to private entities. By the end of the current fiscal year, around 1,000 unprofitable Utility Stores will be shuttered.
The USC received a Rs38 billion subsidy last fiscal year. However, despite a Rs60 billion allocation for the current year, the funds remain undisbursed, indicating the government’s shift in priorities away from state-owned consumer networks.
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