ISLAMABAD: The Utility Stores Corporation (USC) has laid off 2,800 contract employees in the second phase of its resizing plan, as per the private tv report.
According to sources cited by a private TV channel, the corporation’s board approved the plan in line with the federal cabinet’s resizing policy, with implementation set to be completed by June 30.
Under the plan, the number of regions has been reduced from 64 to 34, and branches have been cut from 3,700 to 1,565. The 2,800 contract workers were let go with one month’s salary as per their contract terms, with orders issued separately for each region.
The layoffs are expected to save 100 to 110 million rupees monthly. The corporation is currently facing losses of 500 to 600 million rupees per month, reportedly due to politically motivated branch openings and hiring in the past, which increased the salary bill significantly.
On January 22, the federal cabinet formed a committee to review closing the corporation’s operations.
Government sources said the committee, led by the Federal Minister for Industries and Production, includes seven members, such as the Minister of State for Finance and Revenue, the Minister of State for IT, and secretaries of finance, industries, privatization, and the Benazir Income Support Programme.
ALSO READ
President approves CDA amendment ordinance 2025 with special measures for disabled, minors
In August 2024, the federal government decided to shut down the Utility Stores Corporation, with Prime Minister Shehbaz Sharif requesting proposals for its closure. The government also ended a 50 billion rupee subsidy for the corporation.
Earlier, in a meeting chaired by the prime minister, the government decided to eliminate 28 departments under five ministries to reduce administrative costs and streamline operations.
The ministries included Kashmir Affairs and Gilgit-Baltistan, States and Frontier Regions, Information Technology and Telecommunication, Industries and Production, and National Health Services.
On November 15, 2024, Federal Minister Rana Tanveer Hussain told the Senate Standing Committee on Industries and Production that 3,000 of the corporation’s 11,000 employees were hired by former Punjab Chief Minister Manzoor Watto from his home tehsil, Depalpur, during his tenure.
