KARACHI, Oct 31: Some 214 people have applied for opening franchise utility stores in Karachi and many applicants have shown bank statement of over Rs1 million as against the required demand of Rs500,000 by the Utility Stores Corporation (USC).

The USC management has started evaluating the applications. Some of the aspirants have also applied for a loan of Rs200,000 from the National Bank of Pakistan (NBP) for opening the store.

Manager USC for Sindh and Baluchistan Masood Alam Niazi told Dawn on Tuesday that the last date for receiving applications was September 26 in response to media advertisements made a few months back. As per rules set by the government, the applicants should be of age between 18-40 years. However, he did not reveal as to when the applications would be finalised.

“Some 50-60 new stores will be opened in Karachi under the new franchise scheme after the final selection of the applicants,” Masood said adding that the Prime Minister Shaukat Aziz has already issued orders for opening 20 more regular stores other than the franchised ones in Karachi.

He said that the rush at the regular utility stores will come under control when franchise stores will start functioning.

As per the government plan, more than 6,000 franchise stores will be opened all over the country by December 2007 and out of which some 2,500-3,000 outlets are likely to become operational by December 2006 in the first phase, he added.

The minimum area required for opening a franchise store is 400 square ft. and above and the USC would not bother whether the applicants open the franchise store on a rental premises or as an owner.

He said that the opening of franchise store was one of the main features of the government’s Rozgar Scheme aimed at opening new job avenues for the educated people.

It may be noted that some 55 regular utility stores in Karachi have proved to be insufficient to cope with the rush of buyers, especially for the purchase of subsidised items like sugar, pulses etc.

However, the USC official claims that the utility stores now cater to the needs of 30-40 per cent of the population all over the country.

The prices of 38 essential items available at the utility stores, which had been reduced under a subsidy package of Rs650 million announced by the government for Ramazan, have now returned to the pre-Ramazan level. Masood dispelled the market impression that the utility stores had increased the prices of 38 items. “The prices of items at the stores, especially sugar, and pulses, are still cheaper than the retail markets despite their restoration to the old level,” he said.