Govt to shut another 1,000 Utility Stores from THIS month!

ISLAMABAD: The government of Pakistan has decided to close another 1,000 utility stores this month. The decision was revealed in a meeting of the National Assembly’s Standing Committee on Privatization, chaired by Farooq Sattar.

Utility Stores Corporation (USC) officials told the committee that more than 2,237 employees have already been laid off so far. They also said that only financially viable stores will be considered for privatization.

During the briefing, USC representatives explained that these closures are part of efforts to ease financial stress. The last fiscal year saw a subsidy of Rs. 38 billion was allocated for utility stores but Rs. 38 billion. The subsidy plan of Rs. 60 billion for the current fiscal year is yet to be released.

The committee was further informed that the target is to close around 1,000 financially weak stores out of the total network. Meanwhile, the government is considering privatisation of only those utility stores that are performing well financially.

The privatisation adviser noted that over the past decade, 23 public sector undertakings have incurred a combined loss of Rs. 5.5 trillion.

The Federal Board of Revenue (FBR) chairman said that offering special treatment to utility stores could lead to legal consequences for the FBR, as all collected funds are distributed to the provinces. He stressed that any recommendations by the committee would be submitted to the finance minister, but reiterated that the appropriate platform to resolve such issues is the Alternative Dispute Resolution Committee (ADRC).

The Ministry of Industries and Production reported a Rs. 2.6 billion claim by the Utility Stores Corporation. FBR officials confirmed that they have not filed an appeal against the decision. However, USC representatives said that they have already filed an appeal, to which the committee chairman replied that, if possible, relief should be given to utility stores.

The FBR chairman maintained his position that he was unable to grant any relief directly, confirming that the ADRC was the appropriate forum for resolution.