The Economic Coordination Committee (ECC) has approved a Rs30.2 bn grant for USC closure, marking the end of the Utility Stores Corporation’s decades-long operations. The package, worth Rs30.216 billion, will be used to settle liabilities, employee dues, and expenses tied to the shutdown.
The decision was taken during a meeting chaired by Finance Minister Muhammad Aurangzeb. Federal ministers, including Rana Tanveer Hussain and Jam Kamal Khan, attended, while Energy Minister Awais Leghari joined online.
According to the Ministry of Industries and Production, all dues, arrears, and compensation for employees will be cleared in phases. The committee stressed that protecting workers’ rights remains a top priority. However, around 12,000 employees face job losses after the official closure on July 31.
Only 300 key staff will remain temporarily to oversee the privatisation and disposal of assets. Inventory has already been moved to central warehouses, and notices have been issued to vacate rented outlets. Other assets, including IT systems and infrastructure, will be auctioned.
The Utility Stores had long been criticised for inefficiency, poor service, and misuse of subsidies. Losses currently stand at Rs23 billion, while payments of Rs14 billion are owed to private vendors. Officials say the closure will help reduce financial burdens and allow the government to redirect subsidies more effectively.
Prime Minister Shehbaz Sharif has approved a Voluntary Separation Scheme (VSS) to support employees during the transition. The government plans to shift focus to the Benazir Income Support Programme (BISP), which is being developed as the main channel for targeted subsidies.
Established in the 1970s, the Utility Stores Corporation once served as the country’s key outlet for affordable flour, sugar, and cooking oil. Its closure reflects a shift in policy toward more efficient and targeted welfare programmes.
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