ISLAMABAD: The Economic Coordination Committee (ECC) on Thursday approved a Rs30.216 billion package to formally shut down the Utility Stores Corporation (USC), directing that the process be transparent and orderly.
The summary, moved by the Ministry of Industries and Production, includes settlement of dues, employee welfare, and asset disposal. Closure expenses will be covered through the sale of USC’s assets within the current fiscal year. Finance Minister Muhammad Aurangzeb chaired the meeting, attended by federal ministers, with Energy Minister Awais Leghari joining online.
The ECC assured that employees’ rights remain the government’s top priority. Around 12,000 workers will be affected, but a Voluntary Separation Scheme (VSS) has been approved to cushion the impact. Only 300 employees will stay temporarily to facilitate privatisation and manage the transition.
USC currently faces losses of Rs23 billion, with Rs14 billion payable to vendors. All liabilities will be settled in three phases to protect stakeholders. Inventory will be moved to warehouses, while IT systems and other assets will be auctioned.
The shutdown, effective July 31, follows years of inefficiency, mounting losses, and criticism over poor service and subsidy leakages. Notices to vacate rented outlets were issued from August 1.
Officials said the closure aligns with the government’s plan to shift subsidies to targeted programmes like the Benazir Income Support Programme (BISP), deemed more effective for low-income households.
Established in the 1970s, USC operated hundreds of outlets nationwide but persistent financial strain sealed its fate.
