Govt Moves Forward with Utility Stores Corporation Closure; Sub-Committee Formed to Finalise VSS
ISLAMABAD: The committee established by Prime Minister Shehbaz Sharif to oversee the closure and privatisation of the Utility Stores Corporation (USC) convened a crucial meeting on Wednesday at the Finance Division. The session, chaired by Federal Finance Minister Muhammad Aurangzeb, included participation from senior officials and stakeholders involved in the ongoing transition process.
Among those present were Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production, along with secretaries from the Establishment, Finance, and Industries & Production divisions. The Managing Director of USC and key officers from the Finance Division also attended.
The committee has been entrusted with ensuring a transparent and orderly shutdown of USC operations, with a core focus on designing a fair Voluntary Separation Scheme (VSS) for employees and laying out a structured timeline for the privatisation process.
To drive the process forward, Minister Aurangzeb announced the formation of a sub-committee led by the Establishment Secretary. This team, which includes representatives from the Finance and Industries & Production divisions, will examine the legal framework, operational structure, and financial implications of the proposed VSS. Their findings will be submitted by the end of the week.
The main committee will then consolidate these insights to formulate final recommendations for the Prime Minister, as per the group’s official mandate.
During the session, the committee reviewed the progress made so far and discussed the strategic roadmap for the complete winding up of USC operations by July 31. Discussions centred around crafting a financially sustainable and equitable VSS, considering factors such as potential costs, employee count, and regulatory hurdles.
Additionally, members recommended engaging with the Privatisation Commission to explore viable models for divestment. These may include full privatisation or selective sale of USC assets to optimise value and minimise losses.
Founded in 1971, the Utility Stores Corporation has long served as a government-backed retail network supplying essential goods at subsidised rates, targeting low-income households across Pakistan. At present, USC operates more than 4,000 outlets nationwide.
However, the organisation has struggled with mounting financial challenges. According to the Federal State-Owned Enterprises (SOE) Performance Overview released by the Finance Ministry for the first half of FY2024-25, USC recorded a loss of Rs4.1 billion in six months, bringing its cumulative losses to Rs15.5 billion. These figures underline the deep-rooted structural inefficiencies plaguing the enterprise.
With the government's commitment to reform and streamline state-owned enterprises, the closure of USC represents a significant step toward reducing fiscal burden and reshaping the country’s public-sector retail framework
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