The Utility Stores Corporation (USC), a state-run retail network established in 1971 to provide essential goods at subsidised rates, formally ceased all commercial operations on Thursday, marking the end of an era in Pakistan’s public sector.
The shutdown was carried out in line with the July 31 deadline set by the federal government, following directives from Prime Minister Shehbaz Sharif on June 28 and a board decision made earlier this month.
A formal notification from the Ministry of Industries and Production directed the closure of all sales and procurement activities at USC stores across the country. “All the sales and purchases at utility stores have been closed with effect from July 31,” the order stated, clarifying that only stock transfers and inventory reconciliation will continue. Strict compliance was instructed, with no sales allowed through the corporation’s systems moving forward.
In a parallel development, the USC also announced the permanent suspension of its business-management platform, Odoo. According to a separate internal notification, all Point of Sale systems linked to Odoo were deactivated on July 31. The software will now be used solely for inventory and records management. Any employee found making sales or purchases via Odoo after the cutoff date will face disciplinary action under USC rules.
The federal cabinet had earlier constituted a special committee in January to devise a rapid shutdown strategy for the loss-making SOE. As part of that plan, 1,203 USC retail outlets were closed and 2,237 employees laid off by April. Permanent staff are now being placed in the government’s surplus pool or absorbed into vacancies within other departments.
The decision to wind down the USC follows years of financial strain. According to the Federal Ministry of Finance’s SOE Performance Overview for the first half of FY25, the corporation posted Rs4.1 billion in losses over six months, pushing cumulative losses to Rs15.5 billion. These figures underscored longstanding operational inefficiencies and structural flaws that ultimately made the USC unsustainable.
