ISLAMABAD: The federal government has initiated a major restructuring plan for the Utility Stores Corporation, aiming to close approximately 1,000 loss-making outlets nationwide, according to sources.
As part of this effort, 446 outlets have already been closed, with additional closures to follow based on daily performance reviews. The restructuring primarily affects stores in rural areas that have historically depended on government subsidies but have shown persistently low revenue and financial losses.
Sources revealed that while officials are assessing the fate of the corporation’s 3,800 employees, no immediate job losses are planned. However, dismissals or reassignment of staff are potential outcomes as decisions are finalized.
To mitigate losses, the corporation is also considering merging unprofitable stores with successful ones to streamline operations and improve financial sustainability.
This decision comes after the government withdrew subsidies on essential commodities such as sugar, flour, and cooking oil in August. These subsidies were previously critical for supporting low-income households.
The closure of these outlets reflects the government’s broader strategy to optimize public resources, though concerns remain about the impact on rural communities and the workforce.
