Rs27bn package for USC employees likely today

ISLAMABAD: The Economic Coordination Committee is likely to approve the Rs27 billion package for Utility Stores employees on Tuesday (today).

Secretary Industries and Production Saif Anjum told National Assembly Standing Committee on Privatisation that the financial crisis engulfing Utility Stores Corporation has deepened, with total liabilities now exceeding Rs54 billion. He also confirmed that USC has become a defaulter to key institutions including the Federal Board of Revenue (FBR), Trading Corporation of Pakistan (TCP), and various private vendors.

This package is aimed at addressing longstanding dues owed to employees and vendors, he added. He disclosed that the government has approved allocation of Rs18 billion under a Voluntary Separation Scheme (VSS) for USC employees, providing them with financial relief as operations have come to a halt.

With the complete shutdown of Utility Stores, approximately 12,000 employees are at risk of losing their jobs. However, under the separation scheme, employees will be compensated fairly and transparently, said Secretary Anjum.

As part of the transition, only 300 key employees will remain on board temporarily to facilitate the privatisation process of USC. The government plans to settle all outstanding dues and losses in three phases, ensuring systematic clearance of liabilities and protection of stakeholders.

Currently, the losses of the Utility Stores Corporation stand at Rs23 billion, while payments worth Rs14 billion are pending to private vendors. This bailout and separation package is a crucial step to responsibly wind down USC’s operations while safeguarding the rights of employees and suppliers, the Secretary added.

The panel also discussed Pakistan International Airlines’ (PIA) privatisation. The Privatization Commission officials said that the due diligence process for PIA’s privatisation has already begun. Four consortiums are currently participating in this process.

Officials said that five consortiums had initially submitted their Statements of Qualification, but one failed to meet the required criteria and was not shortlisted. Privatization authorities informed the committee that the shortlisted bidding companies are currently being taken on site visits to PIA facilities.

The government aims to hold the bidding process for PIA in the last quarter of the current year, he added. Responding to concerns, Privatization Commission officials clarified that Fauji Fertilizer is a completely independent and commercial entity. They also noted that Air Blue has relevant experience in the aviation sector, which it can utilize if it chooses to participate.

Officials emphasised that any objections raised by companies will be addressed transparently, and the entire privatisation process will be conducted with full transparency. Privatization officials further added that they cannot afford to favour any one bidder, as doing so would undermine the credibility and success of the entire process.