Federal govt considers shutting down Utility Stores Countrywide

The federal government is contemplating the closure of all utility stores across the country to cut expenses, according to Secretary of Industry and Production Saif Anjum. This announcement came during a Senate Standing Committee meeting on Friday.

Senator Saifullah Niazi inquired about the government’s plans regarding utility stores, leading to Secretary Anjum’s confirmation of the potential shutdown. Anjum stated that the government aims to exit non-essential business operations and criticized the subsidies provided to utility stores as harmful to market competition.

The utility stores management has been given a two-week deadline to resolve outstanding issues with companies, and the Rs50 billion subsidy previously benefitting approximately 26 million households has been discontinued.

The potential closure is causing concern among the 11,000 employees ofcorporation, including 6,000 permanent staff. The General Secretary of the All Pakistan Workers Alliance, Atif Shah, countered the government’s stance, arguing that the Utility Stores Corporation (USC) is not a burden on the national treasury. He highlighted that the USC contributes Rs25 billion annually in taxes, which constitutes 18% of the total grocery sales tax collected by the government.

Shah also claimed that the USC does not receive direct government funding and that the corporation is owed Rs20 billion by the government.

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In response to the proposed shutdown, the USC management plans to seek intervention from parliamentary committees. They intend to brief the National Assembly and Senate’s Standing Committees on Industries and Production about the adverse effects of closing utility stores and request that the matter be addressed in parliament.

The proposed closure would have significant repercussions for millions of low-income families who depend on the discounted goods offered by utility stores. The decision has already sparked protests, with utility store employees demonstrating outside their regional office at Scheme Mor in Lahore. The protesters, armed with placards and chanting slogans, are urging the government to reconsider its decision.