ISLAMABAD: The federal government has decided to wind up Utility Stores Corporation (USC), and an alternative arrangement would be explored that may include cash transfer to the deserving people.
The move is part of the rightsizing of the federal ministries and institutions running under those ministries. The decision was passed on to the ministry of industries and production during a meeting, chaired by Prime Minister Shehbaz Sharif, on August 16.
The USC is on the new list of federal government entities which are to be privatised at the first stage of phased privatisation. USC is a state-owned enterprise that operates chain stores throughout the country, providing basic commodities to the general public at prices which are lower than the open market since the government subsidises them.
The issue of closing utility stores was raised with industries and production secretary Saif Anjum by some members of the Senate attending the Standing Committee on Industries and Production meeting on Friday. However, the secretary said the matter was under discussion with the cabinet, as the government was yet to decide about its complete closure or devolution to the provinces.
Senate panel chairman says privatisation to render 60,000 jobless
The ministry of industries and production has been given two weeks as per the directive of the prime minister to work out alternative arrangements, following the closure of utility stores corporation.
USC was established in July 1971, by taking over 20 retail outlets from the Staff Welfare Organisation. Passing through various stages of expansion and reorganisation, the USC presently operates over 4,000 stores across the country.
In reply to a question at the meeting, Secretary Saif Anjum said work was in progress to transfer the employees of the utility stores to other institutions, Dawn.com reported.
“Government wants to get out of non-essential businesses,” he said, adding that providing relief to utility stores eliminated competition.
While speaking to the media, Senate standing committee chairman Aon Abbas Buppi said that it was a “very sad day for the country”.
“When I asked them whether they had any plans for the employees [of the utility stores], the government did not have a plan for that,” he said, adding that around 60,000 employees would be rendered jobless following the decision. “It is not clear what would happen to thousands of employees.”
“This incompetent government can give nothing but unemployment,” Mr Buppi remarked.
Published in Dawn, August 24th, 2024
