Federal Cabinet Decides to Shut Down Utility Stores Corporation

The federal cabinet has announced the closure of Utility Stores Corporation (USC) across Pakistan, forming a seven-member committee to manage the shutdown process. This committee, led by the federal minister for Industry and Production, includes the Minister of State for Finance and Revenue, the Minister of State for Information Technology, the Federal Secretary of Finance, the Secretary of Industry and Production, the Secretary of Privatization, and the Secretary of the Benazir Income Support Programme (BISP).

The committee’s responsibilities include establishing procedures for USC’s immediate closure, safeguarding the corporation’s assets, and integrating employees into surplus pools or other government roles. Additionally, it will coordinate with BISP to ensure timely delivery of Ramazan packages. The Ministry of Industry and Production will provide support, and the committee will present its findings to the cabinet within seven days.

Once shut down, USC will cease all sales and purchases.

In August 2024, rumors circulated about ending subsidies on essential items like sugar, flour, and cooking oil, but no immediate action followed. Later, in December 2024, speculation about closing 1,000 unprofitable stores surfaced but was countered by government assurances of restructuring instead of closure.

Despite challenges, the government has not yet planned immediate job losses for USC’s 3,800 employees. However, reassignments and other measures could occur. Unprofitable stores may merge with profitable ones to reduce losses.

Earlier, Minister for Industries and Production Rana Tanveer Hussain stated that USC would not shut down entirely but undergo restructuring to improve financial sustainability. In January 2025, the Economic Coordination Committee (ECC) approved Rs1.7 billion to clear USC’s pending liabilities under the Prime Minister’s Relief Package, though no additional budget was allocated for Ramazan relief.

The federal cabinet ultimately decided on USC’s closure or privatization, considering direct cash transfers to support underprivileged individuals as a viable alternative