ISLAMABAD – The federal government has decided to shut down 1,700 loss-making Utility Stores under the privatisation plan.
A meeting of the Senate Standing Committee on Industries and Production, chaired by Senator Aun Abbas, was held to discuss the future of the Utility Stores Corporation.
Officials informed the committee that utility stores are included in the government’s privatization list, but the process was delayed due to a pending two-year audit, which is now set to be completed by August 2025.
Currently, there are over 3,200 utility stores nationwide, out of which 1,700 are running at a loss and will be closed. After privatization, only 1,500 stores will need staff, while the rest of the employees will be moved to a surplus pool.
According to officials, 5,000 employees are regular, while nearly 6,000 are on contract or daily wages. Regular employees will be placed in the surplus pool, while contract and daily wage workers will not receive any compensation and will be laid off post-privatization.
The briefing also revealed that the Utility Stores Corporation’s monthly expenses were previously Rs 1.02 billion. However, after shutting down loss-making stores, costs have reduced to Rs 520 million. Monthly losses have decreased by Rs 220 million, bringing the total deficit down to Rs 500 million.
