Utility Stores face potential shutdown

A senior government official on Friday informed a parliamentary panel that the government is considering shutting down the Utility Stores Corporation (USC), a chain of stores across the country that provides grocery items at subsidized rates.

At a meeting of the Senate Standing Committee on the Ministry of Industries and Production, the secretary of industries and production stated that the federal government may close the USC as part of a right-sizing initiative.

"The decisions of the right-sizing committee will be forwarded to the cabinet. The Ministry of Industries will provide an action plan for the closure. A package for employees is being developed, as the government is pursuing privatization due to financial difficulties," he said.

Speaking to The Express Tribune, USC General Manager Inayatullah Dola said a formal plan will be prepared for shutting down this government-owned enterprise.

"The decision regarding the employees of the USC will be made according to the plan, and the right-sizing committee will provide recommendations to the government on the matter," he added.

The USC is a state-owned enterprise in Pakistan, established with the primary goal of providing essential commodities to the public at subsidized rates. Operating a vast network of retail outlets across the country, the USC aims to ensure the availability of basic food items and household goods at affordable prices, particularly for lower-income groups.

Officials also briefed the Senate Standing Committee on the government's auto policy. They revealed that fewer than 1 million cars are produced annually in Pakistan.

Forty-five licenses have been issued for the manufacturing of electric motorcycles and rickshaws. Currently, 13 car brands are operating in the country, and Pakistan has the capacity to produce 5 million cars. Last fiscal year, the government earned Rs300 billion in taxes from car sales.

Senator Saleem Mandviwalla remarked that Toyota vehicles were exported from Sri Lanka, whereas cars manufactured in Pakistan are of such low quality that they cannot be exported. However, officials noted that tractors and rickshaws are being exported.

Committee Chairman Senator Aon Abbas Buppi asked whether there was under-invoicing in the import of MG vehicles. Mandviwalla responded that the matter had been resolved by the court.

Officials further stated that the 4% export target for vehicles was not met this year because companies did not secure export orders and obtained court stays. The government had not provided any incentives for exports.

Ministry of Industries and Production officials also stated that the demand for warehousing in the country is increasing, and a summary to classify warehousing as an industry is under consideration by the federal cabinet.

The Economic Coordination Committee of the Cabinet has already approved granting industry status to warehousing. The committee fully supports the warehousing policy.