The federal government has officially announced the closure of the Utility Stores Corporation (USC) across Pakistan, bringing an end to the decades-old institution established in 1971 to provide subsidised essential goods to the public. The decision was confirmed by Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhary during a press conference held on Sunday in Islamabad.
Accompanied by USC Managing Director Shabbir Khattak and Raja Muhammad Miskeen, Secretary General of the National Welfare Union of USC, the minister assured that all employees — permanent, contractual, and daily wagers — will receive full severance benefits, in line with the directives of Prime Minister Shehbaz Sharif.
Rs28.2 Billion Package Secured for 11,350 Employees
A comprehensive severance package worth Rs28.2 billion has been agreed upon following consultations between the government and the USC employees’ union. Just days earlier, the Economic Coordination Committee (ECC) approved Rs30.216 billion under the Voluntary Separation Scheme (VSS) for approximately 11,350 USC workers.
Dr. Chaudhary noted that a portion of USC staff would be retained temporarily to manage the orderly disposal of the corporation’s properties and assets.
Recalling USC’s impact, he said the organization once operated more than 5,500 outlets and employed nearly 12,750 people. However, despite repeated government bailouts and restructuring attempts, the USC continued to incur unsustainable financial losses.
Employee Rights Protected; First-Time Inclusion of Contractual Workers
The minister highlighted that this is the first time in Pakistan’s history that contractual and daily-wage employees are being included in a severance program, a move described as “unprecedented and fair”. He credited the Prime Minister’s personal commitment to ensuring that no employee is left without compensation.
A special committee chaired by the finance minister, along with the Ministries of Finance and Industries and Production, played a key role in designing and finalising the severance framework.
Raja Muhammad Miskeen, representing USC employees, expressed gratitude to PM Shehbaz Sharif and the federal government for ensuring a respectful and equitable settlement for all employees.
Nationwide Context: Economic Progress and Flood Relief
Dr. Chaudhary also touched on broader national issues, noting signs of economic improvement in Pakistan with key indicators showing upward trends. At the same time, he expressed deep sorrow over the devastating floods in Khyber Pakhtunkhwa, where nearly 800 lives have been lost.
He praised the efforts of the Pakistan Army, NDMA, provincial governments, and civil society in leading relief efforts, and highlighted the PM’s urgent directive for rapid assistance to the flood-affected families.
