Pakistan to shut down Utility Stores Corporation by July 31

Pakistan will shut down all operations of the Utility Stores Corporation (USC) by July 31, the Finance Ministry said Wednesday, as part of its broader strategy to reform loss-making state-owned enterprises.

Established by the government in 1971, the corporation has a nationwide chain of retail outlets that provide essential commodities to the general public at prices lower than those in the open market.

The corporation took over 20 retail outlets at the beginning but now operates 6,000 stores across the country. The government allocated PKR 47 billion to subsidize the products sold by the retail chain in the last fiscal year.

The decision was reaffirmed during a high-level meeting of the committee formed by the Prime Minister to oversee USC’s closure and privatization. The meeting was chaired by Finance Minister Muhammad Aurangzeb at the Finance Division.

According to the ministry’s statement, the committee reviewed progress on the closure process and discussed the formulation of a fair and financially viable Voluntary Separation Scheme (VSS) for USC employees.

The meeting was attended by Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, secretaries from the Establishment, Finance, and Industries divisions, as well as the managing director of USC and other senior officials.

Officials examined various aspects of the proposed VSS, including its size, fiscal impact, and potential legal implications. The committee emphasized the importance of a smooth and transparent process to safeguard employee rights.

The statement added that the Privatization Commission would be consulted on the optimal structuring of either a full privatization or asset sales linked to USC operations.

To conduct a detailed analysis, a sub-committee was formed under the Secretary Establishment Division. It will include representatives from the Finance and Industries divisions and is tasked with reviewing the VSS’s legal, financial, and operational framework.

The sub-committee is expected to submit its report by the end of the week. The findings will then be used to finalize the main committee’s recommendations for the prime minister.