Thousands of Utility Stores Corp daily wagers sacked

ISLAMABAD: Thousands of employees of the Utility Stores Corporation (USC) were laid off on Sunday as part of the restructuring drive of the state owned corporation.

Sources said that 2,860 daily wage employees have been laid off in the first phase. In the second phase, contract employees will be laid off, sources added.

CLOSURE VS RESTRUCTURING DEBATE

In August last year, the government had announced its intention to close the state-owned USC. The Ministry of Industries and Production Secretary had confirmed this during a Senate standing committee session. He also informed that the government is actively working on a plan to transfer employees from the USC to other institutions, ensuring their employment is secured.

Govt decides to shut down Utility Stores Corporation

The move came as part of a broader strategy to withdraw the government from non-essential business operations. According to the Secretary, the decision to provide relief to utility stores has been counterproductive, as it disrupts the competitive market atmosphere. The government believes that stepping back from such ventures will promote healthier competition in the market, benefiting consumers in the long run.

Days later, the USC employees staged a nationwide strike and protest against the government’s decision, which ultimately led the Minister for Industries and Production Rana Tanveer Hussain to say that the USC is being restructures and not closed.

Govt plans restructuring, not closing Utility Stores: Rana Tanveer

In September 2024, he said that the government is actively evaluating several options for restructuring the USC underscoring that closure is not being considered. He said that the government is looking into different strategies to enhance the organisation’s efficiency and effectiveness.

RAMZAN PACKAGE 2025 DOES NOT INCLUDE USC

Earlier this month, Prime Minister Shehbaz Sharif said that the government would unveil the Ramazan Relief Package this year sans USC’s role. He said that the decision to keep USC out of the package has been taken to prevent corruption and the distribution of low-quality commodities to the people.

Govt to unveil corruption-free Ramazan Package

He said that last year, the government had received immense complaints about the execution of the Ramazan Package by the Utility Stores. Therefore, the government has devised a solution to provide the facility minus the Utility Stores, the premier said.