Govt to offer Rs27b bailout to USC
PHOTO: FILE
The federal government has drawn up a major financial package worth Rs27 billion for the Utility Stores Corporation (USC), with final approval expected in Tuesday's (today) meeting of the Economic Coordination Committee (ECC).
The plan was revealed during a session of the National Assembly's Standing Committee on Privatisation on Monday, where members voiced serious concerns over the closure of USC outlets and non-payment of employees' dues.
Briefing the committee, the secretary for industries and production said the Rs27 billion package includes Rs1518bn for a voluntary separation scheme (VSS) for employees, while Rs13.8bn has been earmarked to clear liabilities owed to vendors.
The committee was told that USC currently carries an overall debt burden of Rs54bn.
The secretary added that out of roughly 11,000 USC employees, only about 300 would be retained until privatisation is completed.
Vendors owed payments will be cleared in two phases, with priority given to those under financial stress.
The secretary admitted that USC has been running losses since subsidies were withdrawn, while Rs46bn remain outstanding against the corporation, including dues to the Trading Corporation of Pakistan and FBR.
Dr Sattar directed that a two-page detailed brief be prepared, including names and contacts of CBA union representatives, details of employee payouts and vendor clearances.
Members of the committee demanded full details of the financial package prepared for workers. Senator Sehar Kamran stressed that employees' rights must be safeguarded in case of privatisation.
She warned against repeating the example of USC, which has been shut down and where workers are being laid off.
It is pertinent to note that with over 4,000 outlets nationwide, the USC was established to curb market manipulation by retailers and wholesalers, enabling the government to intervene when necessary to supply essential commodities, subsidised where required, to any specific area.
The session also saw concerns over worsening electricity outages across the country, with lawmakers criticising prolonged load-shedding under the guise of "load management".
Committee Chairman Farooq Sattar lamented that citizens were facing power cuts as long as 15 hours a day.
Power Division officials claimed there was no load-shedding, only "commercial load management" in high-loss areas.
However, the member vehemently contested the claim. Maulana Abdul Ghafoor Haidri said that officials always deny load-shedding, but across the country, especially in Balochistan, people suffer 15-hour outages.
He pointed out that tube well owners were being denied promised payments while entire feeders had been shut down.
Dr Sattar noted that Islamabad had already introduced disconnect-reconnect and SCADA technology to penalise only defaulters, while suggesting its replication nationwide.