6,000 Utility Stores workers to be laid off as privatisation stalls
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The government has decided to place 5,000 permanent employees of the Utility Stores Corporation (USC) in a surplus pool, while 6,000 contract and daily-wage workers will be laid off, according to a briefing provided to the Senate Standing Committee on Industries and Production, Express News reported.
The meeting, chaired by Senator Aoun Abbas, provided an update on the future of the USC, revealing that the corporation is on the government's privatisation list.
The managing director of USC told the committee that the privatisation process has been delayed due to the absence of a two-year audit. The privatisation will proceed once the audit is completed, with a target completion date of August, 2025.
The director further explained that in the interim, 5,000 permanent employees will be placed in a surplus pool, while 6,000 contract and daily-wage workers will be laid off. These workers will not receive severance packages when the corporation is privatised.
Currently, the USC operates over 3,200 stores nationwide, with 1,700 loss-making outlets expected to be closed. Following privatisation, only about 1,500 stores will require staff.
Additionally, around 1,000 franchises operate under the USC. The corporation's monthly operational cost was previously Rs1.12 billion, but following the closure of unprofitable stores, this has been reduced to Rs520 million per month.
The committee members also expressed dissatisfaction over the absence of Special Assistant Haroon Akhtar and the secretary during the meeting, which was intended to brief the committee on the role and functions of the Sugar Advisory Board. In response, the committee decided to summon the Competition Commission for the next session.
During the meeting, Senator Aun Abbas raised concerns over rising sugar prices despite a surplus in the country's sugar stock.
He highlighted that 44 per cent of Pakistan's sugar mills are owned by political families and questioned why sugar prices were increasing when there was an adequate domestic supply. He pointed out that the government had permitted the export of 700,000 tons of sugar this fiscal year.
Senator Abbas emphasised that sugar mill owners tend to raise prices toward the end of the crushing season and called for an explanation from both the Competition Commission and sugar mill owners on the matter.
The committee plans to invite the Competition Commission and sugar mill owners to provide clarity on the issue of rising sugar prices.
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