ISLAMABAD: A high-level meeting was held at the Finance Division to review the closure and privatisation process of the Utility Stores Corporation (USC) across the country. The meeting was chaired by Finance Minister Muhammad Aurangzeb.
Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar Khan, along with secretaries of the Establishment, Finance, and Industries & Production Divisions, USC’s managing director, and other senior officials also attended.
The committee, formed by the prime minister, is responsible for ensuring that the closure process is fair and transparent. It is also working on preparing a Voluntary Separation Scheme (VSS) for USC employees and setting a timeline for the privatisation.
To carry out a detailed review, the finance minister formed a sub-committee headed by the Establishment Secretary, with officials from the Finance and Industries Divisions. This sub-committee will look into the legal and operational details of the VSS and submit its report by the end of this week.
The committee will then use these findings to prepare final recommendations for the prime minister.
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During the meeting, the committee reviewed the work done so far and discussed the next steps. It confirmed the government’s decision to shut down all USC operations by July 31.
The committee is focused on making the VSS financially practical and fair for employees, while also considering the legal and operational challenges involved.
It was also suggested that the Privatisation Commission be brought in to evaluate the best way to privatise USC—whether through full privatisation or partial sale of assets.
Founded in 1971, USC is a government-owned company that sells basic food and household items at subsidised prices, mainly for low-income families. It currently runs more than 4,000 stores across the country.
As per a recent report from the Finance Ministry, USC suffered a Rs4.1 billion loss in the first half of the current financial year, pushing its total losses to Rs15.5 billion—showing deep financial and structural problems.
