ISLAMABAD – The federal government has announced the permanent closure of all Utility Stores Corporation (USC) outlets across Pakistan, marking the end of an era for the state-run retail network that for decades offered essential goods at subsidized prices.
Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhary revealed the decision at a press briefing on Sunday, flanked by USC Managing Director Shabbir Khattak and the union’s Secretary General Raja Muhammad Miskeen.
“The prime minister has made it clear that no employee should be left vulnerable because of this transition,” Chaudhary said, confirming that all categories of staff — including contractual and daily-wage workers — will receive compensation.
End of a Troubled Legacy
Founded to provide affordable commodities to the public, USC grew into a vast network of over 5,500 stores by 2009, employing nearly 13,000 workers. But despite repeated bailouts, it struggled with chronic financial losses and inefficiencies, ultimately prompting the government to pull the plug.
A special committee led by the federal finance minister is now overseeing the wind-down, while the Ministries of Finance, Industries, and Production are finalizing severance packages. Officials stressed this is the first time Pakistan has extended such benefits to non-permanent staff at a major state-run enterprise, calling it an unprecedented move in terms of worker protection.
Economic Outlook and Flood Response
While announcing the closure, Chaudhary also touched on broader economic issues, saying Pakistan’s financial indicators were beginning to show “positive movement.”
He expressed sorrow over recent flooding, particularly in Khyber Pakhtunkhwa, where nearly 800 lives have been lost. Relief efforts by the military, National Disaster Management Authority, provincial governments, and volunteers were praised, alongside Prime Minister Shehbaz Sharif’s directive for swift support to affected communities.
Employees’ Union Welcomes Compensation Plan
Raja Muhammad Miskeen, speaking on behalf of USC employees, thanked the federal government for what he described as a “fair and dignified settlement,” signaling rare alignment between workers and the state on a contentious economic decision.
