The federal cabinet, chaired by Prime Minister Shehbaz Sharif, on Friday approved several key decisions, including the dissolution of the Utility Stores Corporation (USC) and measures to address the ongoing flood crisis across Pakistan.
Cabinet offers prayers for flood victims
At the start of the meeting, the PM and cabinet members offered prayers for those who lost their lives in the recent rains and floods. PM Shehbaz expressed gratitude to his ministers and federal secretaries for visiting flood-hit areas and personally overseeing relief operations.
He emphasized that rehabilitation efforts must continue without political considerations. “Until the rehabilitation phase is complete, we will not sit idle. We must cooperate fully with the affected people,” he said.
Utility Stores Corporation dissolved
In a major economic decision, the cabinet unanimously approved the dissolution of the Utility Stores Corporation, with operations across the country formally terminated on July 31.
PM Shehbaz directed that the rights of employees must be fully safeguarded in line with legal and regulatory frameworks. All USC employees are set to be dismissed following the decision.
Measures for agriculture and industry
The cabinet reviewed recommendations on stabilizing urea prices to ensure affordability for farmers. PM Shehbaz noted that reducing farmers’ production costs is vital for boosting agricultural output.
In addition, the cabinet approved in principle amendments to the Special Economic Zones Act 2012, which the prime minister said was aimed at providing a more investment- and business-friendly environment. The prime minister reiterated that a strong industrial base would help increase exports and create new jobs.
"By the grace of Allah, the country's economy is stable and on the path of development," he added.
Other key approvals
-
The annual report of the National Economic Council for FY 2023-24 will be presented in parliament.
-
Cabinet ratified the decisions of the Economic Coordination Committee (ECC) meeting held on August 19, 2025.
-
The cabinet also endorsed the outcomes of the Legislative Affairs Committee meeting held on August 18, 2025.
-
The PM returned the summary on medicine prices, expressing displeasure over recent price hikes.
PM on floods, climate, China relations
PM Shehbaz highlighted the scale of the recent floods, comparing them to the 2022 disaster that devastated Sindh and Balochistan, with Sindh being the worst affected. He said over 700 people have died so far, including more than 400 in Khyber Pakhtunkhwa.
He stressed the need to curb illegal constructions on riverbanks and in vulnerable areas in Gilgit-Baltistan, warning against any man-made disasters in the presence of natural calamities. He also said he would call a meeting very soon on the construction of hotels along rivers.
Shehbaz said the NDMA had sent relief goods to the flood-affected areas. "The Peshawar Corps commander is personally monitoring this entire process," he added.
The PM also told the meeting that he had been in touch with Sindh Chief Minister Murad Ali Shah and PPP Chairman Bilawal Bhutto Zardari after three days of rain devastated Karachi.
He further insisted that nobody could do anything when big boulders travelled with water from the mountains, stressing that climate responsibility had increased.
The PM also spoke about Pakistan’s ties with China, noting that the Chinese foreign minister’s recent visit had further strengthened bilateral relations. “I will soon visit China for important meetings, including bilateral and SCO-related discussions,” he announced.
