Govt to Close Another 1,000 Utility Stores

The government has decided to shut down an additional 1,000 utility stores this month. This decision was disclosed during a meeting of the National Assembly’s Standing Committee on Privatization, chaired by Farooq Sattar.

Officials from the Utility Stores Corporation (USC) informed the committee that so far, over 2,237 employees have already been laid off. They also stated that only financially sustainable stores will be considered for privatization.

During the briefing, representatives from USC explained that these closures are part of efforts to reduce financial strain. The previous fiscal year saw a subsidy of Rs. 38 billion allocated to the utility stores, but the Rs. 60 billion subsidy planned for the current fiscal year has not yet been released.

The committee was further informed that out of the total network, around 1,000 financially weak stores are targeted for closure. Meanwhile, the government is considering privatizing only those utility stores that are performing well financially.

The Advisor on Privatization noted that over the past decade, 23 public sector entities have collectively incurred losses amounting to Rs. 5.5 trillion.

Federal Board of Revenue (FBR) Chairman stated that offering special treatment to utility stores could lead to legal consequences for the FBR, as all collected funds are distributed to the provinces. He emphasized that any recommendations from the committee would be presented to the Finance Minister, but reiterated that the proper platform for resolving such issues is the Alternative Dispute Resolution Committee (ADRC).

The Ministry of Industries and Production reported a Rs. 2.6 billion claim by the Utility Stores Corporation. FBR officials confirmed they had not filed an appeal against this decision. However, USC representatives mentioned they had already filed an appeal, to which the committee chair responded that, if possible, the utility stores should be granted relief.

The FBR Chairman maintained his stance, stating that they are unable to offer any concessions directly, reaffirming that ADRC remains the appropriate forum for resolution.