Utility stores to close nationwide due to financial strain

The federal government of Pakistan has announced plans to shut down utility stores across the country in response to severe financial constraints. This decision was communicated by Industry and Production Ministry Secretary Saif Anjum during a briefing to the Senate Standing Committee.

Anjum outlined the closure plan and proposals from the Rightsizing Committee, which includes shutting down utility stores along with other government entities to cut costs. The decision comes as the government struggles with insufficient funds to maintain operations at these stores.

The Senate committee was informed that financial difficulties necessitate these drastic measures to reduce expenses. The closure plan will be reviewed and approved by the cabinet secretary before being presented to the cabinet for final approval. Once the plan is approved, a timeline will be set for the nationwide closure of utility stores.

In addition to the utility stores, the Rightsizing Committee has proposed the closure of several other entities, which will also require cabinet approval. This move is part of a broader effort by the government to address financial limitations by reducing operational costs.

Earlier this year, the federal cabinet approved a five-year privatization program, which will be executed in three phases. The first phase involves privatizing Pakistan International Airlines (PIA), House Building Finance Corporation (HBFC), and several electric supply companies. Subsequent phases will include the privatization of LESCO, MEPCO, PESCO, HESCO, SEPCO, Utility Stores Corporation, State Life Insurance Corporation, and Pakistan Re-Insurance Company.

The decision to shut down utility stores is part of a wider plan to reduce the number of government departments, with 16 departments, including the Pakistan Engineering Council and National Fertilizer Corporation, set to be closed. A timeline of one week to three months has been given for these closures, and subsidies on utility stores have been eliminated.

In response, over 18,000 employees of the utility stores are considering protests against the closures, highlighting the significant impact of the decision on workers and services.