USC future uncertain amid govt confusion

ISLAMABAD: The fate of the Utility Stores Corporation (USC) remains uncertain as the government has not clarified whether it plans to wind up operations or restructure the organization, leaving stakeholders in confusion, according to a meeting of the National Assembly’s Standing Committee on Industries and Production held Friday.

The committee, chaired by MNA Syed Hafeezuddin, heard from USC Managing Director Muhammad Ali Ammer, who expressed his own uncertainty about the corporation’s direction. Ammer noted that subsidies on products sold at USC outlets have ceased since August 18, 2024, leading to an absence of government support.

Asad Islam, Additional Secretary of the Ministry of Industries and Production, informed the committee that the government is exploring various options, including operating the USC under a public-private partnership (PPP) model.

The committee chairman pointed out discrepancies in government communications regarding the USC’s future. “The cabinet signals one course of action while ministers provide contradictory statements. Last time, the minister for Industries said there would be no privatization, only restructuring,” he said.

Ammer also highlighted the corporation’s financial contributions, stating, “We generate monthly sales of Rs8 to 10 billion. We pay around Rs20 billion in taxes per year.

Despite operating just 4,000 stores—1 percent of the country’s 400,000 retail outlets—we contribute 17 percent taxes of entire retail market.

He noted that the Federal Board of Revenue (FBR) has withheld Rs2.5 billion in refund claims, with an FBR member stating that deductions and payments had not been verified. The committee urged the FBR to meet with USC representatives to resolve the issue within two weeks, with assurances from FBR officials to settle the matter promptly.

In addition to discussing the USC, the committee addressed issues related to the Pakistan Steel Mills (PSM). A subcommittee formed on August 15, comprising four MNAs, including Naz Baloch as convener, was tasked with assessing the financial and administrative challenges facing PSM and its employees. The subcommittee requested one month to conduct a thorough investigation, including a site visit and discussions with stakeholders, as previous attempts were hindered by the National Assembly session.