Source: Budget documents
Source: Budget documents

In FY25’s budget, the allocation for utility stores corporation (USC) nearly doubled from the previous year. In the recent past, there have been different proposals to restructure the corporation to improve its finances or close 1,000 loss-making outlets nationwide. There are about 5,130 stores nationwide, according to media sources.

This month, the government decided to close it down since it has done little to justify the billions allocated to it. The steep hike in recent years is partly because of the galloping inflation that pushed up prices of everything, including basic grocery items. The government’s fiscal constraints and drive to divest unnecessary expenses have led to curtains for USC.

While the necessity of providing subsidised groceries to low-income Pakistanis is undeniable, there is only one outlet per about 50,000 individuals. Add to it the reports of corruption and mismanagement — in 2021, about 2,000 ‘ghost’ employees were pulling salaries while being unauthorised as USC workers.

Like the multitude of problems that plague Pakistan, this one too has no easy solution. Yes, the impoverished should have access to subsidised essentials, especially with Ramazan around the corner. However, the delivery through USC has been marred with corruption and mismanagement and created an added fiscal burden.

Published in Dawn, The Business and Finance Weekly, January 27th, 2025

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

More than words
Updated 04 Apr, 2025

More than words

Holistic development can only work when there is organic and credible political activity in the province.
Poor publicity
04 Apr, 2025

Poor publicity

FORTUNE does not seem to be favouring the PTI — at least not yet. With the party’s founder confined from public...
Party pooper
04 Apr, 2025

Party pooper

INDIA’s role of a spoilsport is tiresome. From pulling books from shelves, such as Wendy Doniger’s The Hindus: ...
Canal unrest
Updated 03 Apr, 2025

Canal unrest

With rising water scarcity in Indus system, it is crucial to move towards a consensus-driven policymaking process.
Iran-US tension
03 Apr, 2025

Iran-US tension

THE Trump administration’s threats aimed at Iran do not bode well for global peace, and unless Washington changes...
Flights to history
03 Apr, 2025

Flights to history

MOHENJODARO could have been the forgotten gold we desperately need. Instead, this 5,000-year-old well of antiquity ...