ISLAMABAD: The Utility Stores Corporation (USC) witnessed huge decline in sales to Rs25 billion during the first six months of ongoing fiscal year 2015-16.
USC Managing Director Sultan Mehmood said, while briefing Senate Standing Committee on Industries, revealed that the annual sale of USC was Rs80 billion in 2013-14 and Rs60 billion in 2014-15. He stated that ending of subsidy on items and high cost of doing business caused drastic decline in sales. He pointed out that due to complicated PEPRA rules procurement of sugar could not be done despite pursuing 48 sugar mills.
Sultan Mehmood said the major reason behind low sales was ending subsidy on sugar, heavy rents of offices and stores and other expenditures. He continued that corporation paid a huge tax of Rs 35 million last year. He said during 2007-8, withdrawal of subsidy from ten items from five thousand stores decreased overall sales.
The USC MD said that the opening of one thousand new stores was stopped in 2012 after the corporation was placed in the list of privatisation.
The Committee chairman observed that decrease in business was worrisome and the performance of the organisation must be evaluated on quarterly basis so that corporation continues doing business.
