LAHORE: As employees of the Utility Stores Corporation (USC) staged protests across the country, Minister for Industries and Production Rana Tanveer Hussain on Saturday clarified that the government has no plans to shut down the utility stores but intends to “restructure” the organization.
“The impression that utility stores are being shut down is incorrect. The USC is being restructured to ensure that only deserving people receive relief and price discounts on essential food items and groceries,” the minister stated during a media briefing after inaugurating the 9th Colour and Chem Expo at the Lahore International Expo Centre.
The minister emphasized that the government is already providing subsidies to those in need through the Baitul Maal and Benazir Income Support Programme, and that subsidy misuse has been a persistent issue in the country.
In Muzaffargarh, USC staff protested against the proposed closure of the organization, gathering outside the press club and chanting slogans against the government’s move, which they said would result in job losses for thousands. They warned of escalating their protests if the government does not reverse its decision. Similar demonstrations were reported in Jalalpur Pirwala, Jahanian, and Chishtian.
Mr. Hussain’s remarks followed the federal government’s announcement of its intention to wind up the USC and explore alternative measures, possibly including cash transfers to the needy. The move is part of a broader strategy to rightsize federal ministries and associated institutions.
The USC, a state-owned enterprise, operates over 4,000 stores nationwide, providing basic commodities to the public at subsidized rates. It is among the federal entities listed for privatization in the first phase of the government’s strategy.
The issue of the potential closure of utility stores was also discussed during a Senate Standing Committee on Industries and Production meeting on Friday. In response, Industries and Production Secretary Saif Anjum stated that the matter is under review by the cabinet, with a decision yet to be made on whether to fully close or devolve the stores to the provinces. The ministry has been given two weeks to devise alternative arrangements following the closure, as directed by the prime minister.
Established in July 1971 by acquiring 20 retail outlets from the Staff Welfare Organisation, the USC has undergone various expansions and reorganizations to reach its current state.
Lahore Expo
The 9th Colour and Chem Expo, featuring more than 300 exhibitors, showcased products from the dyes, chemicals, and allied industries, with participation from countries like China, Malaysia, Turkey, and Iran. The event was organized by Event and Conference International, Rainbow Group, and the Punjab Dyes and Chemicals Merchants Association.
During the expo, Mr. Hussain acknowledged that the exports of India, Bangladesh, and other developing countries far exceed those of Pakistan. He noted that Prime Minister Shehbaz Sharif has set a target to double the country’s exports within three years.
Addressing concerns about heavy taxes on the tractor industry, Mr. Hussain mentioned discussions with the finance minister and the Federal Board of Revenue and expressed hope for a positive resolution soon. “Farmers and agriculture are our priority,” he said.
He also addressed the ongoing political unrest, attributing it to a conspiracy that began in 2014, which he suggested escalated when the founder of PTI vowed to become “more dangerous” if removed from power. He urged institutions and the nation to address the instability now that the “main conspirator” has been apprehended.
Mr. Hussain stressed the need to boost Pakistan’s exports, pointing out that the country’s import bill is more than double its exports, which stand at $30 billion annually. He called for increased production of raw materials, particularly in the dyes, chemicals, and allied industries, to reduce reliance on imports.
