Utility stores want subsidy on household items

Management sends summary to ministry; cites decline in sales as reason.


Peer Muhammad March 28, 2015
The official admitted that sales have declined by 25% during the current year and it could be improved if sugar was made available in the stores and subsidy on key consumer items was allowed.

ISLAMABAD: The management at Utility Stores Corporation has asked the government to allow subsidy on key household items, aimed at expanding sales of other items to boost revenue.

A senior officer in the corporation told The Express Tribune that the management has prepared and sent a summary to the Ministry of Industries and Production seeking provision of “reasonable subsidy” on key household items.

The items include flour, ghee, sugar and pulses in order to boost the overall sale of stores, which have drastically reduced during the current year due to the withdrawal of subsidies and unavailability of sugar.

“You know that utility stores are totally based on political economy and we should not expect much profit from it — rather we should provide better facility for public at doorsteps to boost sales,” said the official.

He maintained that in this regard, the management has put forward a summary, suggesting a package for the stores, which will be presented to the Economic Coordination Committee (ECC) for approval.

The official admitted that sales have declined by 25% during the current year and it could be improved if sugar was made available in the stores and subsidy on key consumer items was allowed.

“The monthly sales of all utility stores across the country is around Rs4 billion and it would increase to Rs5 billion if sugar is provided without any suspension,” he said, adding that the ECC has decided to provide 28,000 metric tons of sugar lying in the stores of Trading Corporation of Pakistan (TCP) and it could boost sales.

At present, there are 6,000 utility stores across the country with around 16,000 employees. Out of the 16,000, almost 30% are working on contract basis, 30% on contingence and almost 40% on permanent basis.

Published in The Express Tribune, March 29th, 2015.

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