The government has officially shut down the Utility Stores Corporation as of August 31, after years of significant financial losses. At the same time, it has approved a Rs 28 billion package to support the corporation’s employees.
Speaking at a press conference in Islamabad, Minister for Parliamentary Affairs Tariq Fazal Chaudhry said that the Utility Stores Corporation, established in 1971, had played an important role in the country’s economy but had continued to suffer heavy losses despite multiple attempts at reform.
He revealed that the corporation had been incurring a monthly loss of Rs 600 million, which forced the government to make the difficult decision to dissolve it.
Special Package for Employees
Chaudhry added that Prime Minister Shehbaz Sharif directed a committee led by the Finance Minister to devise a relief plan for the employees. After more than four meetings, the committee finalized a Rs 28 billion package to provide financial security to the contract workers affected by the closure.
He assured the public that the government recognized the employees’ contributions and sought to mitigate the impact of the decision with this financial support.
The decision is part of broader government measures to reduce losses by closing down approximately 1,700 utility stores across the country. The approved package aims to ensure that employees are not left without an income during this transition.
