Key points
- Closure part of government’s broader privatisation strategy
- Employee rights will be protected during transition phase
- Voluntary Separation Scheme planned for affected employees
- Finance-led committee to finalise and report VSS
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif has directed the complete closure of all state-run Utility Stores Corporation operations by July 31, 2025, due to persistent financial losses.
This decision is being implemented as part of the government’s broader privatisation plan, according to a press release issued on Tuesday.
Special Assistant to the Prime Minister (SAPM) for Industries and Production Division Haroon Akhtar has ensured that the rights of the employees shall be safeguarded during the process.
To ensure a smooth transition, the prime minister has established a committee under the Ministry of Finance’s supervision. This committee has developed a Voluntary Separation Scheme (VSS) to provide compensation to the affected employees.
Compensation
In addition to the VSS, the committee recommended that the Privatisation Commission be consulted on the optimal structuring and feasibility of the privatisation process, or alternatively, the possibility of asset sales tied to USC operations.
The committee will finalise the VSS and submit a report to the prime minister for approval. Once approved, all eligible employees will receive compensation.
The closure of USC, part of the government’s broader privatisation plan, is set to reshape the retail landscape, though its impact on employees and consumers remains a point of ongoing concern.
