The Senate Standing Committee on Industries and Production was informed that the Utility Stores Corporation (USC) is preparing to close 1,700 outlets and reduce its workforce by over 11,000 employees as part of a long-delayed privatisation process.
The state-run retail chain is burdened with liabilities amounting to Rs14 billion, while the value of its immovable assets, last assessed in 2020-21, stands at approximately Rs8.3 billion.Â
The committee was told that the USC’s privatisation remains on hold until the completion of a two-year audit, which is expected by August 2025.
Briefing the committee, USC officials said the restructuring plan includes transferring around 5,000 regular employees to a surplus pool, while 6,000 contract and daily-wage workers will not receive any severance benefits. The uncertainty has raised concerns among the workforce, prompting calls for clarity and transparency in the process.
Committee Chairperson Senator Aoun Abbas urged the Ministry of Industries to ensure fair treatment of employees as they face increasing anxiety over job security. He also criticised the absence of the Industries secretary from the session, warning the official to attend the next meeting without fail.
During the meeting, senators also scrutinised the sugar sector, questioning the rise in domestic prices despite the export of 700,000 tonnes of sugar this fiscal year. Abbas pointed out that nearly 44 per cent of sugar mills are owned by political families and raised concerns about price increases following the crushing season.
Officials explained that the Sugar Advisory Board only holds recommendatory powers and does not fix retail prices. It monitors the implementation of the National Sugar Policy and oversees matters related to production, exports, and imports.
Senators called for summoning representatives of the Competition Commission of Pakistan (CCP) and sugar mill owners in future sessions to probe potential price manipulation in the market. The meeting was attended by Senators Masroor Ahsan, Saifullah Sarwar Khan Nyazee, Husna Bano, and Danesh Kumar, along with USC Managing Director Faisal Nisar Chaudhry and other relevant officials.
