ISLAMABAD: The federal cabinet has decided to shut down the operations of the Utility Stores Corporation (USC) across Pakistan, with a committee formed to oversee the closure process, ARY News reported on Wednesday, citing sources.
The committee, led by the federal minister for Industry and Production, will consist of seven members, including the Minister of State for Finance and Revenue, the Minister of State for Information Technology, the Federal Secretary of Finance, and the Secretary of Industry and Production. Additionally, the Secretary of Privatization and the Secretary of the Benazir Income Support Programme (BISP) will also be part of the team.
Sources say the committee will establish the procedure for the immediate closure of USC operations, secure the corporation’s assets, and ensure their protection. It will also explore how to integrate USC employees into a surplus pool and consider merging them into positions within other government entities.
A coordination strategy with BISP will be developed to ensure the timely delivery of Ramadan packages. The Ministry of Industry and Production will provide secretarial support for the committee, which is expected to submit its report to the federal cabinet within seven days.
Once the operations are shut down, USC will no longer engage in sales or purchases.
Earlier, there were rumors in August 2024 that the government was planning to halt subsidies on essential commodities like sugar, flour, and cooking oil, leading to speculation about a potential shutdown of utility stores. However, those claims were not confirmed, and the government continued to provide subsidies for a time.
In December 2024, another wave of rumors suggested the closure of 1,000 loss-making outlets. However, it was later clarified that the government had not made a formal decision to shut down USC but was instead considering restructuring measures to improve the corporation’s financial sustainability.
Despite the financial challenges, no immediate job losses are planned for USC’s 3,800 employees, though reassignments or dismissals could be possible as decisions are finalized. Additionally, the corporation is exploring ways to merge unprofitable stores with more successful ones to streamline operations and reduce losses.
In September 2024, Minister for Industries and Production, Rana Tanveer Hussain, clarified that there were no plans to close USC entirely. He mentioned that the government was exploring restructuring options to ensure the corporation’s long-term viability, with employee consultations a key part of the process.
In January 2025, the Economic Coordination Committee (ECC) approved Rs1.7 billion to settle the pending liabilities of USC under the Prime Minister’s Relief Package. However, no additional budget was allocated for the Ramazan relief package for FY2024-25. The federal cabinet later decided that USC would either be privatized or wound up, with cash transfers for underprivileged recipients being considered as an alternative.
