The National Assembly Standing Committee on Privatisation was informed on Monday that the government plans to clear Rs27 billion in pending payments for employees and vendors of the Utility Stores Corporation (USC) in two stages following its closure.
During the briefing, chaired by Dr Muhammad Farooq Sattar, the committee was told that although USC’s closure has been finalised, protecting the rights of its approximately 11,000 employees remains a priority. Officials said final approval for the payments is expected at the next Economic Coordination Committee (ECC) meeting.
The committee requested a detailed breakdown of the pending dues, which the Privatisation Commission has been directed to provide at its upcoming session. The secretary for industries and production explained that Rs15.18 billion of the package will go toward a voluntary separation scheme (VSS) for employees, while Rs13.8 billion will be allocated to settle outstanding liabilities to vendors. Payments to vendors will be disbursed in two phases, with priority for those facing financial difficulties.
Officials added that only around 300 employees will remain with USC until the privatisation process is completed. USC has reportedly been operating at a loss since subsidies were removed, and total outstanding dues, including obligations to the Trading Corporation of Pakistan and the FBR, stand at Rs46 billion.
Committee members were told that USC was profitable while subsidies were in place, and losses began only after they were withdrawn. Concerns were raised over continuing the closure process despite earlier recommendations against it.
The committee sought complete details of the financial package for employees. Senator Sehar Kamran stressed that workers’ rights must be protected and cautioned against repeating the USC scenario, where employees face layoffs after the shutdown.
USC, with more than 4,000 outlets across the country, was originally established to prevent market manipulation by wholesalers and retailers and allow the government to supply essential goods to specific areas, subsidised when needed.
