Drag of State proceeding to eliminate losses- End date for stopping supply set as July, 31, 2025, of goods and lakhs of workers to lose their jobs due to closure;3700 utility stores to end up winding-up ISLAMABAD: (Parliament Times) As a part of government’s high-level decesion to rationalise the public spending and break the back of ongoing nedless losses, the whole network of the state-owned Utility Stores Corporation (USC) spread over the country will be officially closed down by July 31, 2025, let lose thousands and thousands of low-paid workers working in the these chain of stores. The transition plan involves a Voluntary Separation Scheme (VSS) for all USC staff and the sale (privatization) of any viable supplies.
Why is Utility Stores Corporation being Closed?
The long-anticipated decision to close the loss-making and inefficient state-controlled USC follows years of sustained financial losses. The decision to shut and privatize the schools was announced following a high-level meeting on June 28, which was presided over by the then Prime Minister Shehbaz Sharif, who decided that the closure and privatization of schools should be done swiftly. Continual financial losses and economic health for the national treasury are some of the reasons for such an unpopular move.
What Happens to Employees? The Voluntary Separation Scheme (VSS)
The wind-down scheme will incorporate a Voluntary Separation Scheme (VSS) for all USC employees. The scheme is intended for employees displaced by the closure and helps ensure that employees either move seamlessly into early retirement or new job opportunities with the right level of support and compensation.
What Will Happen to Utility Stores Outlets?
All the utility stores running at a loss will be permanently shut down, official sources informed. The outlets that remain commercially viable will be opened up to private sector hands. This is designed to ensure that the state serves as a catalyst for efficiency, while limiting the drain on the exchequer and pushing private investment in retail.
Who Is Overseeing the Closure?
The privatization commission is expected to supervise the shutdown. The commission will close and privatize the mills in coordination with the Ministry of Industries and regularly report to the Prime Minister about progress and procedure.
What does this mean for consumers and the retail sector at large?
The demise of USC ushers in a new era of state-subsidised grocery retailing in Pakistan. While the initiative could mean fewer low-cost goods for some poor families, the government expects private sector involvement will eventually improve service quality and keep prices down.
Conclusion
The federal government’s closure of Utility Stores Corporation by July 31, 2025, is a significant move in public sector policy. Using PPP with a thorough VRS, the government wants to end financial bleeding and refresh the retail scenario. Now all eyes are on how the transition plays out for staff, consumers, and the broader economy.
