The Production Ministry has Announced that the Government is Considering Closing Utility Stores Nationwide.
On Friday, the Ministry for Industries and Production (MoIP) secretary revealed that the government is contemplating the closure of all utility stores across the country. This potential decision is part of a broader initiative to streamline federal government ministries and associated institutions, as outlined during a meeting chaired by Prime Minister Shehbaz Sharif on August 16.
The Utility Stores Corporation (USC), a state-owned enterprise that operates a network of stores offering subsidized basic commodities, is on the list for privatization. The USC, which was established in July 1971 by taking over 20 retail outlets from the Staff Welfare Organisation, currently runs over 4,000 stores nationwide.
During a recent Senate Standing Committee on Industries and Production meeting, Senator Saifullah Niazi inquired about the fate of utility stores. MoIP Secretary Saif Anjum confirmed that the government is indeed considering shutting down these stores. He also mentioned that plans are underway to transfer USC employees to other institutions.
Anjum explained that the government aims to exit non-essential business operations and reduce market distortions caused by the subsidized prices at utility stores. The government is weighing options, including the complete closure of the USC or the transfer of its responsibilities to provincial authorities.
The Ministry of Industries and Production has been given a two-week deadline, set by the Prime Minister, to develop alternative arrangements for the USC's closure.
Standing Committee Chairman Aon Abbas Buppi expressed his concerns to the media, calling it a "very sad day for the country." Buppi criticized the lack of a clear plan for the approximately 60,000 USC employees who may lose their jobs as a result of the decision. He condemned the government's handling of the situation, labeling it as a source of increasing unemployment.
The USC’s future remains uncertain as discussions continue, with significant implications for both employees and the broader public who rely on its services.