Islamabad — The government of Pakistan has announced a Rs. 27 billion financial bailout package to rescue the crisis-hit Utility Stores Corporation (USC), aiming to support consumers and address long-standing employee and vendor concerns. The decision comes amid growing pressure from the National Assembly Standing Committee on Privatization, which raised alarm over the closure of Utility Stores operations and delays in clearing outstanding payments.

Rs. 27 Billion Bailout for Utility Stores

During a briefing to the committee, the Ministry of Industries and Production disclosed that the financial package will soon be presented to the Economic Coordination Committee (ECC) for approval.

Breakdown of the package includes:

• Rs. 15–18 billion allocated for a Voluntary Separation Scheme (VSS) for employees
• Rs. 13.8 billion earmarked to clear vendor liabilities

Despite this relief effort, the USC remains under a heavy debt burden of Rs. 54 billion, with the largest dues owed to the Trading Corporation of Pakistan and the Federal Board of Revenue (FBR).

Privatization and Employee Separation Scheme

Officials confirmed that the corporation, which once employed 10,000–11,000 workers, will now retain only 300 staff members temporarily until the privatization process is completed.

The remaining employees will be compensated under the VSS scheme, with assurances of “attractive payouts” to ease the transition. Lawmakers, however, demanded full details of the compensation plan and timelines for payments to employees.

Closure of Utility Stores Operations

The committee was informed that:

• Government subsidies to Utility Stores were halted in August 2023
• Operational activities ceased in July 2024

These developments left the organization unable to sustain operations, forcing the government to intervene with a bailout package.

Lawmakers Voice Concerns

Members of the Standing Committee on Privatization expressed serious concern over the abrupt closure of stores and the delays in settling payments. They instructed the ministry to submit a comprehensive compensation and payment plan for employees at the upcoming meeting.

Key Highlights: Utility Stores Bailout 2024

• Pakistan Utility Stores Corporation crisis addressed with Rs. 27 billion bailout
• Rs. 15–18 billion VSS for employees, Rs. 13.8 billion for vendor liabilities
• USC burdened with Rs. 54 billion total debt
• Only 300 employees retained until privatization; others to receive compensation
• Subsidies halted in August 2023, operations closed in July 2024
• Package awaiting ECC approval

What’s Next for Utility Stores?

The bailout aims to stabilize the USC in the short term, but privatization remains the government’s long-term solution. While employees and vendors await payments, policymakers are under pressure to ensure that the transition does not leave vulnerable consumers without affordable essential goods.

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