TODAY’S PAPER | September 10, 2025 | EPAPER

Utility stores shut down to avoid 'another PIA'

SAPM, acting Industries minister says employee relief packages to be disbursed in 15 days


Amna Ali September 09, 2025 2 min read
PHOTO: FILE

Prime Minister’s Special Assistant on Industries and Production Haroon Akhtar Khan said the government decided to close down Utility Stores Corporation (USC) operations to prevent it from turning into “another PIA,” a move that has affected 6,000 employees.

The National Assembly Standing Committee on Industries and Production met in Islamabad on Tuesday to discuss the closure. Industries and Production Secretary Saif Anjum and Haroon Akhtar attended the session.

Saif Anjum informed the committee that all USC operations had been shut down in line with the government’s July 31 deadline.

He added that relief packages for employees had been approved and would be disbursed within 15 days.

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

In July, a high-level committee decided that all operations of Utility Stores Corporation (USC) would shut down by July 31. Rs30 billion was approved to oversee the transition, with funds allocated as a technical supplementary grant for winding-up costs and employee protections.

Of the total, Rs19 billion has been earmarked for employee relief packages, up from the previously planned Rs15 billion.

The Economic Coordination Committee and the Cabinet approved the packages under the Rules of Business. The government also plans to sell 21 USC properties.

Confusion arose during a meeting of the National Assembly Standing Committee on Industries and Production, where the chairman noted that the minister had earlier stated USC operations would not be halted.

Prime Minister’s Special Assistant on Industries and Production Haroon Akhtar Khan said the closure was decided “with a heavy heart,” adding: “Nowhere in the world do governments run businesses. If it does, losses are inevitable.” He further clarified that the International Monetary Fund had directed the government to either reduce losses or shut down USC operations.

Read more: Utility Stores to shut down by July 31

The government shut down Utility Stores Corporation (USC) due to financial constraints, resulting in the termination of 6,000 employees.

Officials said widespread corruption and the burden of subsidies made the organisation unsustainable. “We needed Rs20 to 25 billion to run Utility Stores for two more years,” an official told the National Assembly Standing Committee on Industries and Production.

When committee member Mahesh Kumar asked for the decision to be reconsidered, Industries and Production Secretary Saif Anjum responded that all operations had already ceased.

A high-level committee formed in July had recommended shutting down USC operations by July 31. Rs30 billion was approved to manage the closure, including employee relief packages.

During the session, Prime Minister’s Special Assistant on Industries and Production Haroon Akhtar Khan also called for deliberations on reviving Pakistan Steel Mills with Russian assistance, adding that a decision would be finalised by the end of the month. “If any institution is being revived, the government makes every effort for it,” he said.

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