The National Assembly’s Standing Committee on Privatization was informed that 1,000 additional Utility Stores will be shut down this month as part of an ongoing downsizing initiative.
The announcement came during a briefing chaired by MNA Farooq Sattar, where officials from the Utility Stores Corporation (USC) confirmed that 2,237 employees have already been laid off.
The Managing Director of USC explained that the closures target financially unviable outlets, while profitable stores are being considered for privatization. He also highlighted that although Rs38 billion in subsidies were disbursed last fiscal year, the Rs60 billion earmarked for the current year has yet to be released.
The Adviser on Privatization reported that 23 state-owned enterprises have collectively suffered losses of Rs5.5 trillion over the past decade, underscoring the urgency of structural reforms.
FBR Chairman cautioned that extending further concessions to USC may expose the revenue board to legal complications, emphasizing that all revenues are shared with provinces and any committee recommendations will be forwarded to the Finance Minister.
Officials from the Ministry of Industries and Production mentioned that USC has a pending Rs2.6 billion claim. While FBR has not disputed the claim, USC confirmed that an appeal has been submitted.
