The federal government has recently made a significant decision regarding the closure of loss-making 1700 utility stores in Pakistan. This move follows a meeting of the Senate Standing Committee on Industries and Production, chaired by Senator Aon Abbas, where a detailed briefing was provided on the future of utility stores. The Utility Stores Corporation, a vital institution providing affordable daily necessities to the public, will be impacted by this closure.
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How the Utility Stores Privatization Plan Will Impact Consumers
The government has been considering the privatization plan of utility stores for a long time. In this regard, it was informed in the meeting that utility stores are included in the government’s privatization list, however, the privatization process has been delayed due to a lack of audits in the last two years. Now the government has set a target of August 2025 to complete the audit so that the privatization process can be taken forward further.
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Impact of the Decision to Shut Down 1700 Loss-Making Stores
It was informed in the meeting that at present there are 3200 utility stores across the country, out of which 1700 stores are running at a loss. It has been decided to close these stores so that the financial condition of the institution can be improved and its expenses can be reduced. As a result, after privatization, only 1500 stores will require staff. The remaining employees will be transferred to the surplus pool.
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How the Employee Situation is Impacting Businesses in 2025
There are currently about 5000 permanent employees in utility stores, while about 6000 employees are working on contract and daily wages. Under this privatization process, permanent employees will be included in the surplus pool, however, employees working on contract and daily wages will not be provided with any kind of package. These employees will be laid off after privatization.
How the Financial Loss of Utility Stores Is Affecting Consumers
The financial condition of the Utility Stores Corporation has been deteriorating continuously in the last few years. It was informed in the meeting that the monthly expenditure of Utility Stores was Rs 1.2 billion. However, with the closure of loss-making stores, this expenditure has come down to Rs 52 crore. The loss has come down by Rs 22 crore in a month, after which the total loss has come down by Rs 17 crore to Rs 50 crore.
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What is the Government’s Position on Recent Economic Challenges?
According to government officials, the privatization of Utility Stores aims to improve the financial condition of the institution and provide more efficient services to the public. The government says that closing the loss-making stores will not only reduce the financial deficit but will also help the institution run better. In addition, officials say that the situation of employees will also be taken care of in the privatization process and appropriate measures will be taken for those employees who will be included in the surplus pool.
Conclusion
The federal government’s decision to close 1,700 loss-making utility stores is an important step that is an attempt to improve the country’s financial situation. However, this step will also impact employees and the public, and the government must ensure that no section of the population faces unnecessary hardship due to this process. At the same time, it is important to ensure transparency and accountability in the privatization process so that the quality of service to the public is maintained.
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