Utility Stores employees to get terminated by THIS date

ISLAMABAD: The International Monetary Fund (IMF) has requested Pakistan to remove more employees of the Utility Stores Corporation, by June 30, 2023 in the third phase of the right sizing policy, citing sources.

Sources said that approximately 2,237 daily wage workers have already been dismissed in the first phase, and now in the second phase, approximately 2,800 contract employees from grades 1–13 will be dismissed, and the employees of grade 14 and above will be placed in a surplus pool by the same deadline.

The government also decided to shut down about 1,000 utility stores that are financially weak by the end of the fiscal year, reducing the number from 5,500 stores to 1,500 stores.

Daily wage employees and workers at these stores will also be removed. The remaining stores will then be privatized, according to written documents.

Last year, Utility Stores received a Rs38 billion subsidy, but the Rs60 billion that has been earmarked for the current year has not yet been disbursed, according to officials.

It is worth mentioning that the International Monetary Fund (IMF) Executive Board meeting is taking place on May 9, and Pakistan‘s economic situation is on the agenda.

The IMF Board is expected to approve a disbursement of $1.1 billion for Pakistan as part of the ongoing financial program. According to an IMF statement, the first Review under the Extended Arrangement under the Extended Fund Facility (EFF), the request for modification of performance criteria, and the request for an arrangement under the Resilience and Sustainability Facility (RSF), all taking place on May 9 during the Board meeting.

In addition, Pakistan has also received $1.3 billion in climate financing from the IMF, according to the IMF Director of Communications, Julie Kozac.

Last month Pakistan and the IMF reached a staff-level agreement on the first review under Pakistan‘s 37-month $7bn Extended Fund Facility (EFF) and a new 28-month $1.3bn arrangement under the Resilience and Sustainability Facility (RFS).