The Utility Stores Corporation (USC) will be closed nationwide, Federal Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhary announced on Sunday, assuring that employees’ rights would be fully protected.
Speaking at a press conference with USC Managing Director Shabbir Khattak and National Welfare Union of USC Secretary General Raja Muhammad Miskeen, Dr Tariq said the government and the USC employees’ union had agreed on a comprehensive severance package worth Rs28.2 billion.
The Economic Coordination Committee (ECC) of the Cabinet had earlier approved Rs30.216 billion for the Voluntary Separation Scheme (VSS), covering nearly 11,350 employees of the defunct corporation. A small number of staff will remain to oversee the disposal of USC properties and assets.
Dr Tariq noted that USC, founded in 1971, had expanded to over 5,500 stores nationwide by 2009, employing approximately 12,750 people. Despite repeated government support, the corporation continued to face heavy losses.
“The prime minister has made it clear that employees must not suffer due to the closure,” he said. A special committee, led by the finance minister, has been tasked with supervising the process, with support from the Ministries of Finance and Industries and Production to finalise severance benefits.
Highlighting the scale of the package, Dr Tariq said it was the first instance in Pakistan where contractual and daily-wage employees would receive compensation alongside permanent staff, ensuring equitable treatment for all USC workers.
Turning to broader issues, he said key economic indicators were showing improvement while expressing grief over recent floods, particularly in Khyber Pakhtunkhwa, where around 800 lives were lost. He praised the Pakistan Army, NDMA, provincial authorities, and civil society for their rescue and relief efforts and acknowledged Prime Minister Shehbaz Sharif’s directive for urgent support to affected families.
Raja Muhammad Miskeen expressed gratitude to the prime minister and federal government, calling the settlement “fair and respectable” for USC employees.
