The Economic Coordination Committee (ECC) on Thursday approved a package of Rs30.216 billion for the closure of the Utility Stores Corporation, with directions to ensure the process is carried out in a transparent and organised manner.
The summary, presented by the Ministry of Industries and Production, outlined measures for employee welfare and the settlement of dues. The ECC approved the sale of Utility Stores’ assets within the current financial year, adding that expenses related to the closure would be met from the proceeds of the sale.
The committee emphasised that the protection of employees’ rights remains the government’s foremost priority, directing the immediate payment of dues, compensation, and arrears to all staff.
The meeting was chaired by Finance Minister Muhammad Aurangzeb and attended by federal ministers Rana Tanveer Hussain, Jam Kamal Khan, and others, while Federal Minister for Energy Awais Leghari joined online.
According to The News, with the complete shutdown of Utility Stores, approximately 12,000 employees are at risk of losing their jobs.
As part of the transition, only 300 key employees will remain on board temporarily to facilitate the privatisation process of USC. The government plans to settle all outstanding dues and losses in three phases, ensuring systematic clearance of liabilities and protection of stakeholders.
Currently, the losses of the Utility Stores Corporation stand at Rs23 billion, while payments worth Rs14 billion are pending to private vendors.
Earlier this year, the Ministry of Industries and Production ordered the permanent closure of Utility Stores nationwide, ending decades of subsidised retail operations that served millions of low-income households.
