On August 31, 2025, Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhary announced the closure of the Utility Stores Corporation (USC) across Pakistan during a press conference. Accompanied by USC Managing Director Shabbir Khattak and National Welfare Union Secretary General Raja Muhammad Miskeen, the minister assured that a Rs28.2 billion severance package protects all 11,350 employees.
The government decided to shut down the USC, established in 1971 to provide subsidised essential goods. By 2009, it had expanded to over 5,500 stores, employing nearly 12,750 staff members. However, persistent financial losses led to its closure. On August 28, the Economic Coordination Committee (ECC) approved Rs30.216 billion for a Voluntary Separation Scheme (VSS) covering permanent, contractual, and daily-wage employees. A small number of staff will remain to manage asset disposal, ensuring a smooth transition.
ECC to Approve Rs27 Billion Package for Utility Stores Employees
Dr. Chaudhary emphasised that Prime Minister Shehbaz Sharif directed the protection of employee rights. As a result, a Rs28.2 billion package, developed with input from the Ministries of Finance and Industries, includes provisions for both contractual and daily-wage workers, marking a first in Pakistan’s history. Raja Muhammad Miskeen praised the government for this fair settlement, highlighting its respect for the USC staff.
The minister highlighted positive economic indicators, including a projected GDP growth of 2.5% for 2025. However, he expressed sadness over the ongoing flood crisis, especially in Khyber Pakhtunkhwa, where more than 800 lives have been lost.
