Pakistan to Close Utility Stores Corporation by July 31 Amid Privatization Push

Pakistan to Close Utility Stores Corporation by July 31 Amid Privatization Push
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Pakistan will shut down the state-run Utility Stores Corporation (USC) by July 31 as part of a broader initiative to reform and privatize underperforming public sector entities, the finance ministry announced Wednesday via state broadcaster Radio Pakistan.

Established in 1971 to offer subsidized goods to low-income households, the USC has faced years of financial losses, mismanagement allegations, and operational inefficiencies. Once central to the country’s food security strategy, the retail chain has come under increasing scrutiny for politicized hiring and weak oversight.

A high-level committee led by Finance Minister Muhammad Aurangzeb convened in Islamabad to oversee the closure process, including the design of a Voluntary Separation Scheme (VSS) for USC employees. A sub-committee will deliver recommendations on the scheme’s structure later this week.

The Privatization Commission will advise on whether USC’s assets should be sold or restructured. The move aligns with IMF-backed reforms to reduce fiscal burdens from loss-making state enterprises.