ECC Approves Funds for Utility Stores Corporation Closure

The Economic Coordination Committee (ECC) has sanctioned a technical supplementary grant of Rs. 30.216 billion to facilitate the orderly closure of the Utility Stores Corporation (USC).

The decision was made during a committee meeting presided over by the Federal Minister for Finance and Revenue, Muhammad Aurangzeb, on Thursday.

This action signifies a substantial stride in responsibly managing the persistent financial strain that USC places on the national treasury, while simultaneously protecting the interests of employees impacted by the closure. By endorsing severance packages, compensation, and the settlement of outstanding payments, the government is dedicated to ensuring that employees receive their due benefits, thereby alleviating the social and economic repercussions of USC’s termination.

The ECC has also instructed the Ministry of Industries & Production to further streamline the financial prerequisites for USC’s closure. Additionally, it was determined that USC’s assets, including properties, will be liquidated within the current fiscal year to partially offset closure expenses through the generated revenue.

The Cabinet body emphasized the significance of executing the closure with structure and openness, encompassing the disposal of USC properties to partially cover liabilities. The authorized financial package highlights the government’s focus on safeguarding employee welfare while upholding fiscal prudence throughout USC’s operational wind-down. The USC network consisted of 3,742 outlets nationwide, employing over 11,000 individuals, including 5,000 daily wage workers.

Prime Minister Shehbaz Sharif had previously instructed the implementation of a Voluntary Separation Scheme (VSS) to ease the impact on employees facing job losses. According to officials, the closure is intended to optimize subsidy distribution through more focused initiatives such as the Benazir Income Support Programme (BISP), which is being positioned as the main social safety net.

The meeting saw attendance from Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Power Sardar Awais Ahmad Khan Leghari (via virtual means), Special Assistant to Prime Minister for Industries and Production Haroon Akhtar Khan, federal secretaries, and high-ranking officials from relevant ministries, departments, and regulatory bodies.