6,000 utility stores staff to get the axe
The Senate Standing Committee on Industry and Production was informed on Friday that the framework for the privatisation of the Utility Stores Corporation (USC) was ready, under which 1,700 loss-making stores would be closed down and 6,000 employees would be sacked.
The committee, which met here with Senator Aun Abbas Bappi in the chair, received a briefing on the future of the USC. The managing director of the USC told the committee that for the time being the privatisation process had been stopped because of a lack of its audit for two years.
"The privatisation will take place after the audit is complete," the USC MD said, adding that 5,000 permanent employees would be sent to the surplus pool, while 6,000 employees on contracts and on daily wage basis would be laid off.
He added that the USC was on the government's privatisation list. "The target is to complete the two-year audit in August 2025" after which the privatisation would be carried out, the MD stated. He also informed the committee that an initial estimate of the USC properties had been made.
According to the USC MD, there were 3,200 utility stores across the country, out of which the government decided to shut down 1,700 loss-making stores. After the privatisation, only 1,500 stores would require staff. He also said that the USC's monthly losses had been reduced to Rs220 million.
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3 days ago
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ISLAMABAD: The government has shut down 1,925 loss-making Utility Stores outlets countrywide being operated by the Utility Stores Corporation (USC) and 4,060 out of a total 11,614 employees were sacked. Briefing the Senate Standing Committee on Industries and Production held here under the chairmanship of Senator Aon Abbas to discuss matters pertaining to various attached departments of the Ministry of Industries, Managing Director Utility Stores Faisal Nisar Chaudhry said the closure of these outlets has resulted in saving of Rs1.7 billion. The MD USC said that if the management failed to privatise the USC annually Rs7 billion will be required to pay the salaries of the employees. The MD of the USC told the committee that for the time being, the privatisation process had been stopped because of a lack of its audit for two years. 'The privatisation will take place after the audit is complete,' the USC MD said, adding that 5,000 permanent employees would be sent to the surplus pool, while 2,554 employees still on contracts and on daily wage basis would be laid off. He added that the USC was on the government's privatisation list. 'The target is to complete the two-year audit in August 2025' after which the privatisation would be carried out, the MD stated. He also informed the committee that an initial estimate of the USC properties had been made. According to the USC MD, there were 3,742 Utility Stores across the country, out of which, the government has shut down 1,925 loss-making stores. After the privatisation, only 1,500 stores would require staff. He also said that the USC's monthly losses had been reduced to Rs220 million. The chairman committee inquired the present status of Rightsizing in Utility Stores Corporation (USC). The department briefed the committee that restructuring/rightsizing plan aimed at the eventual privatisation of the USC was formally approved by the USC Board of Directors during its 185th meeting held on 27th December 2024. The USC is being restructured under the restructuring plan according to which the loss-making stores of the corporation are going to be closed and surplus staff thereafter is being laid off. As part of the ongoing restructuring plan of USC, 1,925 stores have been closed and around 4,060 employees (1,823 contractual and 2,237 daily wages) have been laid off. It was also disclosed that the USC will not have sufficient funds to pay salaries to its 5,000 employees beyond next month, due to the closure of a significant number of its outlets. The USC officials informed the committee that the secretary had forwarded recommendations at the highest level, requesting that Rs7 billion funds be allocated for USC in the upcoming budget. The MD USC said that the stores were running on government subsidies and now the government has decided to even provide Ramadan relief package through Benazir Income Support Programme (BISP) to needy people. He said that USC's outstanding payment stand at Rs25 billion. The MD USC further stated that the management has decided to offer golden handshake scheme to 25 percent of the USC employees, otherwise, Rs2.7 billion annually will be spent on the salaries of these employees. The chairman committee recommended that details of the employees recruited in 2007 and 2013 should be submitted in the next meeting, from each province providing 10 office orders. This will enable the committee to assess the duration of their contractual appointments. Additionally, it was recommended that representatives from the Board of Directors (BOD), CBA Union, and PC should be invited to the next meeting. The meeting also discussed the role, functions and achievements of Pakistan Industrial Development Corporation (PIDC). The officials, while briefing the panel on PIDC, said that at the time of its creation, Pakistan did not inherit any industrial base as East and West Pakistan combined had only 34 factories out of a total of 921 industrial units in the Subcontinent i.e. 3.6 per cent. They said that the 34 industrial units including, textile mills, cigarettes, rice husking, cotton ginning and flour milling, contributing only 7 percent of GDP and employing only 26,400 people out of an 80 million population at that time. The East Wing produced 70 percent of the world's jute, but there was not a single jute mill and West Bengal (India) was almost the sole buyer. In the West wing, only 16,000 of the total 15,00,000 cotton bales produced could be processed domestically. 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Copyright Business Recorder, 2025
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NA panel irked by ‘non-professional' attitude of KE CEO
ISLAMABAD: The National Assembly Standing Committee on Industries and Production, Tuesday, expressing serious anger over the informal, unofficial and non-professional response of K-Electric (KE) chief executive officer (CEO) observed that the officer seemed unfit for the key position. The committee meeting held here under the chairmanship of Syed Hafeezuddin to discuss matters pertaining to Utility Stores Corporation (USC) and K-Electric. The committee members question CEO K-Electric why it has not withdrawn court cases regarding power subsidies provided to various consumers during coronavirus crisis. Responding to the queries of committee members, K-Electric Moonis Alvi expressed his inability to withdraw court cases, which made the committee members furious and declared his response an insult to the directions of parliamentary panel. The CEO K-Electric tendered his apologies but the committee members rejected his apology and expelled him from the meeting. The panel grilled the Federal Board of Revenue (FBR) for failing to implement its directives regarding the inclusion of the iron and steel sector in the Export Facilitation Scheme. The committee held FBR responsible for a potential loss of $1.5 billion in exports due to the delay in issuing the required Statutory Regulatory Order (SRO). Expressing strong disapproval, the chairman remarked that FBR was ignoring parliamentary instructions and announced a formal notice against the department. The frustration was further fuelled by the continuous rotation of FBR representatives at committee meetings. 'First, an FBR lady used to come, then Faisal used to come, and today another gentleman has come; we will bear him too,' the chairman remarked sarcastically, urging the media to highlight the FBR's conduct. Another pressing matter discussed was the financial crisis facing the Utility Stores Corporation (USC). With Rs7.2 billion reportedly dues from the corporation, FBR officials claimed USC had demanded Rs18.50 billion. The chairman urged both sides to resolve the dispute immediately to prevent employee layoffs. 'We want Utility Stores employees not to be unemployed,' Hafeezuddin said, assuring union representatives that their jobs would be protected. Throughout the session, the committee emphasised accountability across public and private institutions and made it clear that delays, defiance, or neglect of parliamentary directions would not be tolerated. The committee decided to present a unanimously agreed report on the closure of USC during the Session to safeguard the future of USC employees. It sought a detailed report by Pakistan Services for Quality Standard Authority on less export of Pakistan dairy products, meat and honey. The standing committee issued key recommendations during its sitting debating the issues of K-Electric regarding load shedding in industrial sector of Karachi, closure of Utility Stores Corporation's sacked employees, role of Pakistan Services for Quality Standards Authority in maintaining vehicle quality standards and agriculture-related products for local use and export to USA, UK and European countries. The committee assured its support to the ministry for legislation when and where required to remove hindrances in the progress of public benefits. Copyright Business Recorder, 2025
Express Tribune
24-05-2025
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Ghee millers demand payment of Rs13b dues
Listen to article Ghee millers have asked the government to clear the outstanding dues of Rs13 billion against the Utility Stores Corporation (USC). Ghee millers and other industries had supplied their products to USC but they were denied payments. The matter was taken up at a meeting between Prime Minister's Special Assistant Haroon Akhtar Khan and the Pakistan Vanaspati Manufacturers Association (PVMA) on Friday. PVMA Chairman Sheikh Umar Rehan, Ministry of Industries and Production Secretary Saif Anjum and representatives of the ghee industry were present in the meeting. The discussion focused on the challenges being faced by the ghee manufacturing sector. Haroon Akhtar acknowledged the concerns raised by the industry and assured them of the government's support. "We fully recognise the issues being encountered by the ghee sector and are committed to not putting the industry under any additional pressure," the PM aide said. He declared that all outstanding dues would be paid promptly. While acknowledging that cash disbursements take time, he emphasised that efforts would be made to expedite the process. He also highlighted the government's recent efforts to support the low-income families, stating, "PM Shehbaz Sharif has successfully delivered the Ramazan package directly to the deserving households."
