ISLAMABAD: Secretary of the Ministry of Industry and Production, Saif Anjum, has confirmed that the federal government is considering shutting down utility stores across Pakistan.
“The government wants to exit unnecessary businesses,” the secretary said while confirming the development during a meeting of the Senate Standing Committee on Industry and Production .
In response to Senator Saifullah Niazi’s query, Saif Anjum stated that efforts are underway to transfer the employees of utility stores to other departments.
He added that subsidizing utility stores was harmful to market competition.
Meanwhile, the utility stores management stated they were given a two-week deadline to resolve issues with companies, while the Rs50 billion subsidy, which previously provided significant relief to around 26 million deserving households, has been halted.
The management further stated that over 11,000 employees, including 6,000 permanent staff, are concerned about the potential closure.
Speaking to a private TV channel, Atif Shah, General Secretary of the All Pakistan Workers Alliance, said that the Utility Stores Corporation (USC) is not a burden on the national exchequer.
“The government collects Rs120 billion in taxes annually from companies through grocery sales,” he said, noting that the USC contributes Rs25 billion, which, according to him, makes up 18% of the total amount.
Furthermore, Atif stated that they do not receive funds from the government and that the salaries of all employees are “self-generated.” He claimed that the government owes Rs20 billion to the corporation.
Meanwhile, the USC management has decided to seek help from parliament, with sources indicating that they will approach the National Assembly and Senate’s Standing Committees on Industries and Production.
The standing committees will be informed about the impacts of the utility stores’ closure, sources said, adding that they will be asked to address the issue in parliament.
The move would severely impact millions of low-income families who have long depended on discounted goods, the sources added.
The government’s decision also prompted protests, with utility store employees staging a demonstration outside their regional office at Scheme Mor in Lahore.
