Utility Stores Corporation Undergoing Significant Restructuring

Islamabad: On Tuesday, the Senate Standing Committee on Industry and Production was briefed about the current status of the Utility Stores of Pakistan Corporation. The Utility Stores Corporation (USC) is currently undergoing a major restructuring and rightsizing plan approved by its Board of Directors on December 27, 2024. This plan is designed to prepare USC for eventual privatization.

As part of this initiative, USC is closing unprofitable stores and laying off surplus staff. So far, 1,925 stores have been closed, resulting in the layoff of approximately 4,060 employees. This includes 1,823 contractual and 2,237 daily wage workers. Despite these closures, USC still operates 3,742 outlets across Pakistan with 11,614 employees.

A critical issue facing USC is a severe funding shortage. The Corporation anticipates it will not have enough funds to pay its remaining 5,000 employees beyond the next month due to the extensive store closures. USC officials have requested that funds be allocated in the upcoming budget to address this shortfall.

In response, the Chairman Committee has requested detailed information on employees recruited in 2007 and 2013, specifically asking for ten office orders from each province to assess the duration of their contractual appointments. The committee also recommended inviting representatives from the Board of Directors (BOD), CBA Union, and PC to the next meeting to further discuss the situation.