ISLAMABAD: The Public Accounts Committee (PAC) on Wednesday urged the government to strengthen the management and controls of the Utility Stores Corporation instead of shutting it down, warning that such a move would render thousands jobless at a time when making ends meet was difficult.

PAC members expressed strong protest, saying they felt misled after being assured in parliamentary sessions that the USC would continue operations to provide essential ration items at subsidized rates to low-income families.

Last week, MNA Asif Bhutto particularly drew the House’s attention to the closure of USC, reminding lawmakers that the government had earlier pledged to resolve its financial and administrative challenges rather than discontinue the facility.

Chairman of the Public Accounts Committee (PAC), Junaid Akbar, told members on Wednesday that his phone had not stopped ringing in recent days as desperate Utility Stores Corporation (USC) employees, who have not been paid for four months, pleaded for help to save their jobs.

Defending the government’s position, Secretary Industries and Production, Saif Anjum, told the committee that the decision to shut down the USC became inevitable after the network expanded to more than 5,000 outlets nationwide with over 11,000 employees, making it financially unsustainable.

“Rampant corruption has completely paralysed USC’s operations. Last year the government had decided to end subsidies to the corporation. Instead, cash transfers will now be made directly into the accounts of low-income families through the Benazir Income Support Programme (BISP),” Anjum informed the committee.

He revealed that the corporation’s liabilities to vendors had exceeded Rs14 billion, prompting companies like Nestlé and Lipton to suspend supplies. USC also became unable to pay salaries. “Despite repeated appeals, the government did not allocate funds in the budget to rescue USC,” he added.

Anjum further stated that the government was preparing a handsome voluntary separation scheme (VSS) for USC employees, though he declined to share details despite repeated demands from members.

MNA Naveed Qamar strongly objected, saying the government could not simply dismantle such a vast organisation. “The government must come up with a plan to keep kitchen of the employees running,” he said.

Khawaja Sheraz Mehmood termed the move “institutional killing” and alleged that the closure was being carried out under pressure from the International Monetary Fund (IMF).

Chairman Junaid Akbar referred the matter to a sub-committee headed by Naveed Qamar for further review.

In a separate session, the PAC expressed dissatisfaction over the failure of Private Educational Institutions Regulatory Authority (PEIRA) to curb the exploitation of students and parents by private school owners.

Junaid Akbar criticised the lack of regulation over private schools, saying their owners charged exorbitant fees without any policy framework.

“It makes no sense that parents are forced to pay fees even during holiday seasons,” Akbar told the Chairperson of the Private Educational Institutions Regulatory Authority (PEIRA), Sayeda Zia Batool. He also denounced the practice of compelling parents to purchase uniforms, books and other items from specific outlets designated by schools.

Responding to the criticism, Sayeda Batool described private school owners as a “mafia” running education as a lucrative family business. She informed the committee that PEIRA operated an active complaint cell and had so far addressed more than 7,000 complaints. “We strongly encourage parents to come forward and report malpractices by private schools,” she added.

Published in Dawn, August 21st, 2025