THE government has temporarily banned the purchases in Utility Stores. Perhaps it wants to restructure and remove inefficiencies. Utility Stores have been suffering losses since 2013-14.

Total losses incurred in this period are Rs13 billion — less than the individual figures of losses sustained by PIA and Pakistan Steel Mills during the same period.

State-owned enterprises (SOEs) are costing the government heavily. Total annual losses suffered by these are over Rs1.2 trillion. But Utility Stores have a different story. As compared to Rs13 billion losses incurred in five years they have contributed Rs35 billion to the government exchequer in terms of tax collection.

The non-operational status of Utility Stores will give the private sector an open field to grab the share of business being carried previously Utility Stores. This will ultimately result in tax evasion because of undocumented business on the part of private retail sector.

Last but not least, Utility Stores would provide employment to over 14,000 people.

Its almost 5,500 branches are scattered all over the country. The government can make good use of these branches in any project, including the distribution of sapling for the prime minister’s tree plantation campaign.

Imtiaz Hussain
Khanewal

Published in Dawn, September 20th, 2018