June 08, 2007	Friday	Jamadi-ul-Awwal 22, 1428

LAHORE, June 7: The federal government is considering opening 5,000 more utility stores across the country, which will cost around Rs1.5 billion and create 10,000 jobs. The federal industries and production ministry has been asked to prepare a feasibility report in this regard.

Industries secretary Shahab Khawaja said a final decision would be taken after the preparation of the report.”

The government had approved opening of 1,000 utility stores last year to what it claimed provide essential food items to the people at subsidised rates.

An official of the federal industries and production ministry insisted that MNAs belonging to the ruling coalition would get quota of utility stores in their constituencies. But Mr Khawaja said stores would be opened on “need basis” and not on political considerations.

The establishment of a utility store, according to the secretary, costs around Rs300,000, including a stock inventory of Rs100,000, and creates employment for two persons.

The prime minister’s adviser on finance, Dr Salman Shah, has already indicated that the government intends to give subsidies of Rs200 billion in the budget for the forthcoming fiscal year.

A part of that is expected to be transferred to consumers through existing utility stores.

Critics say that the utility stores had failed to provide meaningful relief to consumers and help the government stabilise food prices.

A former executive committee member of the Lahore Chamber of Commerce and Industry, who is in the retail business, said the opening of utility stores is against the government’s stated policy of getting out of business.

“On the one hand the government is privatising everything in the public sector, and on the other it is trying to create an artificial competition for private sector in the retail business,” he said.