Federal Govt decides to shut down utility stores from July 10

(Web Desk): The federal government has decided to completely shut down Utility Stores across the country starting from July 10.

Prime Minister Shehbaz Sharif has directed that employees of the Utility Stores Corporation be offered a Voluntary Separation Scheme (VSS) package upon the closure of the organization.

According to official documents, the Prime Minister has instructed that all employees be given the option to voluntarily separate from service through a compensation package.

All operational utility stores will begin ceasing operations nationwide starting tomorrow. In a meeting chaired by the Managing Director of the Utility Stores Corporation, it was decided that the inventory at the stores will be transferred to warehouses. From there, goods will be returned to retailers under official supervision.

It was also decided that all IT equipment in stores and other offices will be returned. Similarly, racks and other assets will be auctioned off through a transparent process.

The meeting further decided that stores operating on rented premises will be issued eviction notices starting August 1. A valuation of Utility Stores’ assets will be carried out through the General Managers of IT.

It is worth mentioning that in March 2025, the government had already decided to shut down 1,700 loss-making utility stores and terminate contract and daily-wage employees.

A meeting of the Senate Standing Committee on Industries and Production, chaired by Senator Aun Abbas Buppi, was held in Islamabad. During the meeting, a briefing was given on the future of the Utility Stores Corporation.

The Managing Director of the Corporation informed the committee that Utility Stores are included in the government’s privatization list. However, the privatization process has stalled due to the absence of an audit over the past two years. The target is to complete a two-year audit by August 2025. An initial valuation of the corporation's property has also been carried out.

He added that the Utility Stores Corporation is on the government’s second-tier privatization list. The 1,700 loss-making stores are being shut down, and once privatization proceeds, contract and daily-wage employees will be laid off.

The MD further stated that currently, the corporation has 5,000 permanent employees who will be moved to the surplus pool.