Pakistan to approve PKR 27B package for Utility Stores employees

Pakistan’s top economic decision-making body, the Economic Coordination Committee (ECC), is set to approve a PKR 27 billion package for Utility Stores Corporation (USC) employees on Tuesday.

Secretary for Industries and Production, Saif Anjum, informed the National Assembly’s Privatization Committee that USC’s financial crisis has deepened, with total liabilities now exceeding PKR 54 billion.

He confirmed that USC has defaulted on payments to major institutions, including the Federal Board of Revenue (FBR), Trading Corporation of Pakistan (TCP), and several private vendors.

The package is designed to clear long-standing dues owed to employees and vendors, he added.

Anjum revealed that the government has already approved PKR 18 billion under a Voluntary Separation Scheme (VSS) for USC employees, providing financial relief as the corporation winds down its operations.

“With the complete shutdown of Utility Stores, around 12,000 employees are at risk of losing their jobs. However, under the separation scheme, they will be compensated fairly and transparently,” said the Secretary.

As part of the transition, 300 key employees will be retained temporarily to facilitate USC’s privatization process.

The government also plans to settle all outstanding dues and losses in three phases to ensure systematic clearance of liabilities and safeguard stakeholder interests.

Currently, USC faces losses of PKR 23 billion, while payments worth PKR 14 billion are pending to private vendors.

According to Anjum, this bailout and separation package is a crucial step to responsibly close down USC operations while protecting the rights of employees and suppliers.

Meanwhile, the National Assembly’s Standing Committee on Privatization also reviewed progress on the privatization of Pakistan International Airlines (PIA).

Officials from the Privatization Commission reported that the due diligence process for PIA has begun, with four consortiums currently participating.

Initially, five consortiums had submitted Statements of Qualification, but one failed to meet the required criteria and was not shortlisted. The shortlisted bidders are now being taken on site visits to PIA facilities.

The government aims to hold the bidding process for PIA in the last quarter of the current year, officials said.

Addressing concerns, officials clarified that Fauji Fertilizer is an entirely independent commercial entity and that Air Blue has relevant aviation experience it may leverage if it chooses to bid.

They further assured that all objections from participating companies will be handled transparently, stressing that favoritism cannot be afforded in the process as it would compromise both credibility and success.