ISLAMABAD: The federal government has decided to close 1,700 outlets of Utility Stores Corporation (USC) as part of a long-delayed privatisation process.
Senate Standing Committee on Industries and Production was informed that the Utility Stores Corporation (USC) is preparing to reduce its workforce by over 11,000 employees.
The state-run chain, grappling with Rs14 billion in liabilities, while the value of its immovable assets stands at approximately Rs8.3 billion as per the 2020-21 assessment.
The committee was told that the USC’s privatisation remains on hold until the completion of a two-year audit, which is expected by August 2025.
Briefing the committee, the USC officials further said around 5,000 regular employees would be transferred to a surplus pool while 6,000 contract and daily-wage workers would not receive any severance benefits as operations downsize.
The uncertainty has raised concerns among the workforce, prompting calls for clarity and transparency in the process.
Committee Chairperson Senator Aoun Abbas urged the Ministry of Industries to ensure fair treatment of employees as they face increasing anxiety over job security.
He also criticised the absence of the Industries secretary from the session, warning the official to attend the next meeting without fail.
During the meeting, senators also scrutinised the sugar sector, questioning the rise in domestic prices despite the export of 700,000 tonnes of sugar this fiscal year. Abbas pointed out that nearly 44 per cent of sugar mills are owned by political families and raised concerns about price increases following the crushing season.
