6,000 utility stores staff to get the axe

ISLAMABAD:

The Senate Standing Committee on Industry and Production was informed on Friday that the framework for the privatisation of the Utility Stores Corporation (USC) was ready, under which 1,700 loss-making stores would be closed down and 6,000 employees would be sacked.

The committee, which met here with Senator Aun Abbas Bappi in the chair, received a briefing on the future of the USC. The managing director of the USC told the committee that for the time being the privatisation process had been stopped because of a lack of its audit for two years.

"The privatisation will take place after the audit is complete," the USC MD said, adding that 5,000 permanent employees would be sent to the surplus pool, while 6,000 employees on contracts and on daily wage basis would be laid off.

He added that the USC was on the government's privatisation list. "The target is to complete the two-year audit in August 2025" after which the privatisation would be carried out, the MD stated. He also informed the committee that an initial estimate of the USC properties had been made.

According to the USC MD, there were 3,200 utility stores across the country, out of which the government decided to shut down 1,700 loss-making stores. After the privatisation, only 1,500 stores would require staff. He also said that the USC's monthly losses had been reduced to Rs220 million.