Govt set to shut utility stores by this date

The federal government has officially decided to shut down the Utility Stores Corporation (USC), setting July 31, 2025 as the final deadline for closure.

This major decision follows a directive from Prime Minister Shehbaz Sharif, issued after a high-level meeting held on June 28. As part of the closure plan, a Voluntary Separation Scheme (VSS) will be offered to all USC employees.

Sources state that loss-making Utility Stores will be permanently closed, while the remaining ones are likely to be handed over to the private sector. The Privatisation Commission has been tasked with managing the transition and reporting updates directly to the Prime Minister.

The Ministry of Industries is also involved in implementing the wind-up process. This move marks the end of the state-run retail chain, which has been incurring heavy losses over the years.

Earlier, in May 2025, the International Monetary Fund (IMF) had advised Pakistan to lay off additional USC employees by June 30 as part of its restructuring efforts.

Already, 2,237 daily wage workers have been let go in the first phase, and 2,800 contract staff (grades 1 to 13) are expected to be dismissed next. Employees in grades 14 and above will be shifted to a surplus pool, according to insiders.

Additionally, the government plans to close down 1,000 more non-performing Utility Stores, reducing the total number from 5,500 to 1,500. Staff at these outlets will also be laid off, while the rest will be privatized.

Although USC received Rs 38 billion in subsidies last year, the Rs 60 billion allocated for the current fiscal year has yet to be released, sources added.