Govt plans nationwide closure of utility stores amid subsidy cuts

Millions of low-income families to lose access to discounted essential goods

The federal government is planning to close utility stores across the country, a move that will seriously impact millions of low-income families who have depended on these stores for discounted essential goods.

According to a news report, this decision follows the government’s halt of a Rs50 billion subsidy, which had provided crucial relief to approximately 26 million households.

In a recent Senate Standing Committee meeting on Industry and Production, the Secretary of Industry confirmed that the government was considering the closure of utility stores as part of a right-sizing initiative. 

The Secretary of Industry added that an action plan for the stores’ closure is being developed, with a package for affected employees under consideration.

Due to financial constraints, the plan involves redirecting funds initially allocated for the utility stores subsidy to address the energy crisis, specifically to provide relief on electricity bills.

The subsidy, which had offered up to 25% discounts on essential items like flour, ghee, rice, sugar, and pulses, has already been discontinued. These goods will now be sold at regular market prices, removing the savings that low-income families once relied on.

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