The government has officially closed the Utility Stores Corporation as of August 31, following years of financial losses. Simultaneously, a Rs28 billion package has been approved to support its 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 reform attempts.
He revealed that the corporation was incurring a monthly loss of Rs600 million, which compelled 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 create a relief plan for the employees. After more than four meetings, the committee finalized a Rs28 billion package to provide financial security to contract workers affected by the closure.
He assured that the government recognized the services of the employees and aimed to mitigate the impact of the decision through this financial support. The move is part of broader government efforts to reduce losses by shutting down around 1,700 utility stores nationwide. The approved package is intended to ensure that employees are not left without an income during this transition.
