ISLAMABAD: The Public Accounts Committee (PAC) on Wednesday raised alarm over the closure of Utility Stores Corporation (USC) and unpaid salaries of nearly 14,000 employees. Amid growing concerns over their future, the Industries Secretary pledged to present a relief package by Friday.
The PAC convened under Chairman Junaid Akbar Khan to examine audit paras related to the Ministry of Federal Education and Professional Training, Ministry of Religious Affairs and Ministry of Industries and Production.
Syed Naveed Qamar criticised the government for misleading parliament by repeatedly assuring that Utility Stores would not be closed. He deplored that the institutions which had consistently underperformed had remained on the privatisation list for years. PAC member Malik Aamir Dogar stressed that the issue of unpaid salaries affecting families of 14,000 employees. The situation could not be resolved by merely clearing a few months’ salaries, he said and added the USC owns assets worth over Rs200 billion. PAC Chairman Junaid Akbar Khan questioned: “How is it justified that the managing director receives a salary while the workers do not?”
The secretary for Industries and Production admitted that there were no sufficient revenue streams to meet salary obligations. He explained that salaries had been delayed due to cash shortfalls, and a bailout request had been submitted to the Finance Division, proposing a model similar to the Pakistan Tourism Development Corporation (PTDC).
Sanaullah Khan Masti Khel criticised the government for repeatedly experimenting with models without finding a sustainable solution, stating: “We are chasing illusions.” However, the secretary for Industries assured the committee that USC would not be shut down as a company and that all its assets would remain under state control. He confirmed that Utility Stores currently lacks internal revenue to cover salaries. In the past, he explained, the corporation managed expenses independently, but no allocation was made for it in the latest federal budget.
Chairman Junaid Akbar questioned if the government intended to shut down all such institutions, pointing out that many USC employees had been on contract service for the last 17 years. “What will happen to them?” he asked. The Industries Secretary assured the committee that a relief package for employees — covering contract, regular, and daily-wage staff — would be presented by Friday. Chairman Junaid Akbar subsequently referred the issue to a sub-committee led by Syed Naveed Qamar, noting that political engagement was also necessary. “We should also ask Bilawal Bhutto to raise the issue with Mian Sahib,” he added.
While reviewing audit paras related to the Ministry of Federal Education and Professional Training, the PAC expressed serious dissatisfaction over the performance of Private Educational Institutions Regulatory Authority (PEIRA), particularly its failure to regulate school fees and facilities.
PAC member Malik Aamir Dogar pointed out that private schools operated with unregulated and ever-increasing fee structures, stating: “Every school has its own fee policy, increasing every year without oversight.”