The government has officially announced that the Utility Stores Corporation (USC) will shut down by July 31, 2025. This decision has been made because the USC has been suffering heavy financial losses and is no longer working efficiently.
A special committee led by Finance Minister Muhammad Aurangzeb is now looking into how to handle the closure in a way that supports the workers. One option being considered is a Voluntary Separation Scheme (VSS) for the employees. This plan would give compensation to staff who leave their jobs willingly.
The USC currently has 11,421 employees. If all of them receive the VSS package, it could cost the government more than Rs. 29 billion. However, the committee is still deciding whether every employee will get the severance package or only the 5,217 workers who hold regular positions.
Over the years, the USC has struggled to stay profitable. It has become heavily dependent on government subsidies to keep its stores running. Despite the help, losses have continued to grow. In just the last six months, the USC reported losses of Rs6.1 billion, pushing total losses close to Rs. 16 billion.
Because of these mounting losses and debts, the government believes that closing the USC is the best solution. Officials say that shutting down the stores will help reduce the financial burden on the national budget.
Talks are still ongoing about how to finalise the separation plan and help employees adjust to this big change. More updates will be shared once decisions are made.
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