USC closure
The government's decision to shutter the loss-making Utility Stores Corporation (USC) by the end of July is a painful but necessary corrective to decades of fiscal bleeding. Between July and December 2024 alone, USC lost over Rs6 billion and has net liabilities of over Rs50 billion. Meanwhile, despite offering low prices, USC actually saw sales crash by 50% in recent times.
This also puts the estimated Rs29 billion needed for golden handshakes into perspective. If no action was taken, USC would have spent the same amount just to keep running over the next few years. Although the government is considering limiting payouts to only 5,217 'regular' employees, after wasting billions for decades, skimping on severance pay is not the way to go.
Future savings can still be reallocated to more productive initiatives that support low-income citizens. In the meantime, the government must ensure price control enforcement in areas that were highly reliant on utility stores to minimise the impact of closures on shoppers who actually relied on them. While a resolution for USC appears nearly finalised, progress on the much-publicised privatisation deals of other SOEs has been minimal.
PIA has failed to attract suitable bidders despite multiple attempts, and the recent deal with Russia to revive Pakistan Steel Mills may backfire. None of the two dozen SOEs up for privatisation have sparked the kind of interest that would inspire government confidence.
The closure of USC proves the government can make tough choices. Now, it must accelerate the pace of decision-making - from years to weeks — because, like USC, many state-owned enterprises are losing so much money that waiting to sell them for cents on the dollar could end up being more costly than shutting them down and salvaging what remains.
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Express Tribune
6 hours ago
- Express Tribune
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Express Tribune
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Express Tribune
20 hours ago
- Express Tribune
Land routes barred for Arbaeen pilgrims amid security concerns
Listen to article The Pakistani government has imposed a ban on overland travel to Iran and Iraq for Arbaeen pilgrims, citing national security and public safety concerns. Interior Minister Mohsin Naqvi announced that pilgrims will now only be allowed to travel to the holy sites in Iran and Iraq by air. 'Pilgrims will not be permitted to use road routes to Iraq and Iran,' he said in a message shared on social media. 'This decision has been made in view of public safety and national security,' the minister added, stating that the ban was finalised after consultation with the Ministry of Foreign Affairs, the Balochistan government, and security agencies. After extensive consultations with the Ministry of Foreign Affairs, Balochistan Government, and security agencies, it has been decided that Zaireen will not be allowed to travel to Iraq and Iran by road for Arbaeen this year. This difficult decision was taken in the interest of… — Mohsin Naqvi (@MohsinnaqviC42) July 27, 2025 To accommodate the change, the federal government has decided to increase the number of flights. 'Under Prime Minister Shehbaz Sharif's directive, more flights will be arranged for Arbaeen pilgrims,' Naqvi said, noting that maximum possible flight capacity will be ensured. Pakistan International Airlines (PIA) has announced a special flight operation for Arbaeen starting August 8. Outbound flights from Pakistan to Najaf will operate from August 8 to 11, while return flights from Najaf to Pakistan are scheduled for August 18 to 23. Read More: Pakistan, Iran and Iraq to form joint body to streamline pilgrim travel PIA has set the fare at USD 675 per passenger for the special Arbaeen operation. However, many intending pilgrims have urged PIA to reduce the fare and introduce additional flights to meet high demand during the religious occasion. Every year, hundreds of thousands of Pakistani pilgrims travel overland to Najaf via Iran. The sudden ban on road travel is expected to significantly affect travel logistics, especially for those unable to afford air travel.
