ISLAMABAD – The federal government has officially decided to close all Utility Stores across Pakistan by July 31, marking the end of an era for the state-run retail chain that served millions of low-income citizens.
The decision was taken during a key meeting chaired by Finance Minister Muhammad Aurangzeb. The move is part of the government’s broader plan to reduce financial losses and push forward its privatisation agenda.
A special sub-committee has been formed to finalise a Voluntary Separation Scheme (VSS) for Utility Stores Corporation (USC) employees. The scheme will offer compensation to workers, aiming to ensure a smooth exit instead of abrupt layoffs.
Officials revealed that the USC has faced massive losses—Rs15.5 billion in just six months—prompting urgent action. The government will also consult the Privatisation Commission to decide whether USC assets should be sold entirely or partially.
With over 4,000 outlets nationwide, USC has long provided affordable essential items. Its closure will shift the burden to private retailers and may impact price stability for the common citizen.
