Prime Minister's Special Assistant on Industries and Production Haroon Akhtar Khan has 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.
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.
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.
The government shut down 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 Anjum responded that all operations had already ceased.
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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