Govt moves to close or privatise USC this month

ISLAMABAD: The government has proposed a Voluntary Separation Scheme (VSS) for Utility Stores Corporation (USC) employees, offering a golden handshake to around 11,421 staff members, as part of its decision to close and privatize the entity.

The government has approved to appoint valuators to gauge the actual value and price of the total assets, almost six roti centres, stocks and over 500 vehicles with expected value of Rs80 billion to Rs100 billion. It remains to be seen whether the USC would be closed down first and then sold out. There is another proposal to privatise it instead of closing it down. “We will move forward before July 31, 2025,” said one cabinet minister while talking to The News on the condition of anonymity.

The Ministry of Finance has raised four major objections over the proposed package of VSS but decided to explore all viable options.

A high-level meeting of the committee constituted by the prime minister to oversee the closure and privatisation of the USC was held on Wednesday at the Finance Division, with Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb in the chair. The committee has been tasked with ensuring a smooth and transparent closure process, formulating a suitable VSS for USC employees and recommending a structured timeline for privatisation.

During the official meeting, over 21 assets of the USC, including its offices located in major urban centres, including Islamabad, were reviewed. It reaffirmed that all USC operations will cease by July 31, 2025 in line with government directives.

The committee evaluated various aspects of the proposed VSS and advised consultation with the Privatisation Commission to explore viable options, including asset sales. To support this, a sub-committee, led by the Secretary Establishment Division and including representatives from the Finance and Industries divisions, was formed to examine the legal, operational, and structural aspects of the VSS. It will present a report by the end of the week, enabling the main committee to finalise its recommendations for the prime minister.