Govt announces official deadline for Utility stores closure

ISLAMABAD: The federal government has finalized plans to shut down the Utility Stores Corporation (USC), with an official deadline announced for the closure.

According to the sources, the government has set the deadline on 31st July, 2025. The decision was taken following the directive of Prime Minister Shehbaz Sharif after a high-level meeting on 28th June.

Under the plan for closure, all USC employees will be offered a Voluntary Separation Scheme (VSS) offer. Sources indicate that Utility Stores branches that are running in deficit will be shut down for good, and the rest of the branches are likely to be privatized.

The transition will be facilitated by the Privatisation Commission, which has been instructed to oversee the process and keep the Prime Minister informed of progress.

The Ministry of Industries is also reported to be coordinating the implementation of the wind-up plan. The move brings an end to the state-owned retail chain, which has been hit with continued losses over the last few years.

Previously, in May 2025, the International Monetary Fund (IMF) requested Pakistan to lay off additional Utility Stores Corporation employees by June 30 as part of its policy of right-sizing.

Sources have revealed that 2,237 daily wage employees have already been terminated in the first phase, and in the second phase, 2,800 contract workers in grades 1 to 13 would be let go.

Grade 14 and above employees will be shifted to a surplus pool by the same date, according to sources.

The government has also made the decision to shut down another 1,000 financially struggling Utility Stores by the end of the ongoing fiscal year, bringing the number down to 1,500 from 5,500.

The daily wage workers working in these stores will also be laid off. The rest of the stores are to be privatized, as indicated in official papers.

Last fiscal year, Utility Stores received a Rs 38 billion subsidy, but the Rs 60 billion allocated for the current year has not been disbursed, sources confirmed.