Utility Stores Corporation to Cease Operations, Employees Offered VSS Package
Federal Government Orders Complete Closure of Utility Stores by July 10
The Federal Government of Pakistan has made the decision to completely shut down all Utility Stores across the country, effective July 10th. This significant move will see the cessation of operations for all active Utility Stores, marking the end of an era for the subsidized retail chain. Prime Minister Shehbaz Sharif has also directed that a Voluntary Separation Scheme (VSS) package be offered to all Utility Stores employees affected by the closure.
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PM Directs VSS for Employees as Utility Stores Wind Down Operations
According to official documents, Prime Minister Shehbaz Sharif has specifically instructed the provision of a VSS package for all employees wishing to voluntarily separate from the Utility Stores Corporation (USC). Key decisions regarding the closure were finalized during a meeting chaired by the USC Managing Director. Starting tomorrow, all operational Utility Stores nationwide will begin winding down. Goods currently in stores will be transferred to warehouses, and from there, inventory will be returned to suppliers under the supervision of authorities.
Asset Management and Privatization Efforts Underway for Utility Stores
The meeting also decided on the return of all IT equipment from stores and other offices across the country. Racks and other assets will be auctioned off through a transparent process. Furthermore, notices will be issued from August 1st for the vacation of rented store premises. An assessment will also be conducted to determine the value of Utility Stores’ assets. This closure follows a March 2025 decision to shut down 1,700 loss-making Utility Stores and terminate contract and daily wage employees.
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Future of Utility Stores: Privatization and Employee Status
During a Standing Committee meeting of the Ministry of Industries and Production, chaired by Senator Aon Abbas Buppi in Islamabad, a briefing was provided on the future of the Utility Stores Corporation. The USC Managing Director informed the committee that Utility Stores are on the government’s privatization list. The privatization process has been stalled due to a lack of a two-year audit, which is targeted for completion by August 2025. The initial valuation of Utility Stores’ properties has already been conducted. It was also revealed that the USC is on the government’s second privatization list. While 1,700 loss-making stores are being closed, permanent Utility Stores employees, numbering around 5,000, will be transferred to a surplus pool.
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