The federal government has formally announced the closure of the Utility Stores Corporation (USC), ending more than five decades of operations. The decision was shared by Federal Minister for Parliamentary Affairs Dr Tariq Fazal Chaudhary during a press conference in Islamabad alongside USC Managing Director Shabbir Khattak and National Welfare Union Secretary General Raja Muhammad Miskeen.
The minister assured that the rights of all USC employees — permanent, contractual, and daily wage — had been safeguarded under the directives of Prime Minister Shehbaz Sharif. A consensus was reached with the employees’ union to provide a severance package worth Rs28.2 billion, with a certain number of staff retained temporarily to manage the disposal of USC’s properties and assets.
Earlier, the Economic Coordination Committee (ECC) had approved Rs30.2 billion for a Voluntary Separation Scheme (VSS) benefiting nearly 11,350 employees of the now-defunct corporation. Dr Chaudhary stressed that this was the first time in Pakistan’s history that contractual and daily-wage workers were included in such a settlement, ensuring fair compensation for all.
Reflecting on USC’s legacy, the minister said the organisation, founded in 1971, played a crucial role in providing essential commodities to citizens at subsidised rates. By 2009, it had expanded into a nationwide network of over 5,500 stores employing nearly 12,750 workers. Despite repeated government efforts, however, USC remained unable to overcome heavy financial losses.
Dr Chaudhary emphasised that the prime minister was determined to protect employees during the transition, with a special committee led by the finance minister tasked with overseeing the process. He also acknowledged the contributions of the Ministries of Finance and Industries in finalising the severance plan.
Turning to the broader economic situation, the minister said Pakistan’s economy was showing signs of recovery, with key indicators moving in a positive direction. At the same time, he expressed sorrow over the widespread devastation caused by recent floods, particularly in Khyber Pakhtunkhwa, where hundreds of lives had been lost.
Raja Muhammad Miskeen, speaking on behalf of USC employees, thanked the government and prime minister for ensuring what he described as a fair and dignified settlement for the workforce.
