Utility Stores to shut down by July 31

Closure of USC, part of govt’s broader privatisation plan, is set to reshape retail landscape

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A high-level committee formed by the prime minister to oversee the closure and privatisation of the Utility Stores Corporation (USC) has reaffirmed that all operations of the corporation will be shut down by July 31 in accordance with government directives.

The meeting, held in Islamabad on Wednesday, was chaired by Finance Minister Muhammad Aurangzeb.

The committee is tasked with ensuring a smooth and transparent closure process, along with formulating a Voluntary Separation Scheme (VSS) for USC employees and recommending a structured timeline for privatisation.

Read More: 6,000 Utility Stores workers to be laid off

The committee reviewed the progress of its assigned tasks and held detailed discussions on the next steps. During the meeting, the members focused on developing a fair and financially viable VSS for USC employees, which would facilitate an orderly exit for workers and ease the transition.

Members of the committee examined various aspects of the VSS, including its potential size, fiscal impact, and the legal and operational challenges associated with its implementation. They also evaluated the implications of the scheme’s rollout and its potential effects on the workforce.

In addition to the VSS, the committee recommended that the Privatisation Commission be consulted on the optimal structuring and feasibility of the privatisation process, or alternatively, the possibility of asset sales tied to USC operations.

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To facilitate a more thorough analysis, the chair has constituted a sub-committee, led by the Secretary of the Establishment Division.

The sub-committee will delve into the legal and operational aspects, size, and structure of the proposed VSS and submit its findings to the main committee by the end of the week.

The closure of USC, part of the government’s broader privatisation plan, is set to reshape the retail landscape, though its impact on employees and consumers remains a point of ongoing concern.