Govt announces shutting down utility stores

ISLAMABAD: Federal Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhary on Sunday confirmed the government’s decision to close the Utility Stores Corporation (USC) nationwide, assuring that all employees would be protected through a comprehensive severance package.

Addressing a press conference alongside USC Managing Director Shabbir Khattak and Secretary General of the National Welfare Union of USC Raja Muhammad Miskeen, the minister assured that the rights of all USC employees — permanent, contractual, and daily wagers — had been fully protected under the directives of Prime Minister Shehbaz Sharif.

He said a consensus had been reached between the government and the USC employees’ union to provide a comprehensive severance package worth Rs28.2 billion.

Three days earlier, the Economic Coordination Committee (ECC) of the Cabinet approved Rs30.216 billion for the Voluntary Separation Scheme (VSS) for almost 11,350 employees of the defunct USC.

The USC has been closed down, but a certain number of employees would be retained in order to dispose of its properties and assets in a smooth manner.

Addressing the presser today, Dr Tariq Fazal noted that USC, established in 1971, had played a vital role in providing essential commodities to the public at subsidised rates. By 2009, its network had expanded to more than 5,500 stores nationwide, employing nearly 12,750 workers. However, despite repeated government interventions, the corporation continued to suffer heavy losses.

"The premier has made it clear that employees must not suffer due to the closure," he said, adding that a special committee chaired by the finance minister had been constituted to oversee the process. He further said the Ministries of Finance and Industries and Production also played a key role in finalising the severance benefits.

Highlighting the unprecedented scope of the package, Dr Fazal emphasised that this was the first time in Pakistan’s history that contractual and daily-wage employees were being included, ensuring fair compensation for all USC staff.

Turning to broader national issues, the minister said Pakistan’s economy was showing signs of improvement with key indicators moving positively. At the same time, he expressed grief over the devastation caused by recent floods, particularly in Khyber Pakhtunkhwa, where around 800 lives had been lost.

He praised the Pakistan Army, NDMA, provincial administrations, and civil society for their relief and rescue efforts, while lauding PM Shehbaz Sharif’s directive for urgent assistance to affected families.

Speaking during the presser, Raja Muhammad Miskeen expressed gratitude to the prime minister and the federal government for ensuring what he described as a fair and respectable settlement for USC employees.