The Utility Stores Corporation (USC) on Thursday formally ceased operations, in compliance with the July 31 deadline established earlier this month to close the state-owned enterprise (SOE).

Established in 1971, USC was an SOE tasked with supplying essential commodities at subsidised rates, primarily targeting low-income households. It operated over 4,000 retail outlets nationwide.

According to a USC notification from the Ministry of Industries and Production, available with Dawn.com, the decision was taken in compliance with directives issued by Prime Minister Shehbaz Sharif on June 28 and a meeting of the board of directors earlier this month.

“All the sales and purchases at utility stores have been closed with effect from July 31, except shifting of stock from stores to warehouses and returned to vendors and handing-taking of stores’ inventories,” the notification reads, instructing strict compliance with the order.

Additionally, sales through the business-management suite Odoo have been permanently discontinued as of today, a second USC notification read.

“All point of sale systems connected with Odoo will be rendered inactive across all stores effective July 31,” the notice read. “No store in charge or designated official is authorised to conduct any sales through the Odoo system after this date. Additionally, no procurement transactions shall be initiated through Odoo either.”

According to the notification, the Odoo system will only be utilised for inventory reconciliation and record maintenance and any attempt to carry out sales or purchase transactions after today will be treated as “a serious violation of official policy”.

It added that “any employee found conducting or facilitating sales or purchases through Odoo after July 31 shall be held personally responsible, and strict disciplinary action will be initiated under USC rules.”

According to the finance ministry’s Federal SOE Performance Overview for the first half of FY25, USC posted a loss of Rs4.1 billion over six months, with cumulative losses rising to Rs15.5bn — highlighting persistent structural and operational challenges.

In January, the federal cabinet formed a high-level committee to develop a comprehensive strategy for the prompt shutdown of USC operations nationwide. The committee was tasked with determining a plan for the immediate closure of the USC, as well as arrangements for placing permanent USC employees in the surplus pool or absorption against existing vacancies in other federal government organisations.

The National Assembly’s Standing Committee on Privatisation was informed in April that under the restructuring plan of USC, 1,203 Utility Stores were closed while 2,237 employees were laid off.