Final Notice to Shut Down Utility Stores
Final Notice to Shut Down Utility Stores: The Government of Pakistan has taken the final decision to close the Utility Stores Corporation (USC), and has issued instructions to completely close the institution by July 10, 2025. This decision will affect not only the employees but also a large number of the public who have long relied on these stores for affordable essential goods.
Important decisions were taken in this regard in a meeting chaired by the MD of the Utility Store Corporation. It was decided in the meeting that all the items present in the store will be transferred to the Marlawar warehouses, where the goods will be returned under the supervision of the relevant authorities; that is, the items present in the store offices across the country will be auctioned transparently.
History of Utility Stores Corporation
The Utility Stores Corporation was established in 1971. It aimed to provide daily necessities to the public at affordable prices through subsidies. This network of thousands of stores across the country has served the needs of the middle and poor classes for decades.
Reasons for the closure
According to government sources, there are several factors behind the closure of USC:
- Financial deficit: The corporation has been continuously in deficit for several years.
- Mismanagement and corruption: Various reports have revealed evidence of mismanagement, hoarding, and corruption in USC.
- Private sector alternative: The government maintains that the presence of private suppliers and stores in the market has limited the role of USC.
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Future of employees
Thousands of permanent and contract employees of Utility Stores Corporation will be directly affected by this decision. The government has claimed that it is considering providing retirement packages, golden handshakes, and other alternative employment opportunities for the employees.
Public Reaction
Common citizens and civil society are expressing concern over the closure of USC. Citizens say that utility stores were the only source from which they got some relief during the period of inflation. Residents of remote and backward areas will be particularly affected by the closure.
Government Position
The closure of USC is part of a reform agenda aimed at reducing government spending and improving fiscal discipline. The spokesperson also said that the government is working on introducing a new subsidy model,
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Alternative measures
- Digital subsidy model:
It announced that measures like the “Benazir Income Support Program” or the “Ration Concession Program” will be further activated.
- Partnership with private retail chains:
According to some reports, the government is considering partnerships with large retail companies to continue providing affordable goods.
The closure of the Utility Stores is a controversial decision that signals a significant shift in Pakistan’s public welfare system. The impact of this decision will be long-term, and the government should introduce an alternative system on time.