The government has officially shut down the Utility Stores Corporation from August 31 after years of financial losses, while approving a Rs28 billion package to support its employees.
Speaking at a press conference in Islamabad, Minister for Parliamentary Affairs Tariq Fazal Chaudhry said the Utility Stores Corporation, established in 1971, had played an important role in the country’s economy but continued to suffer heavy losses despite multiple attempts at reform.
He revealed that the corporation had been incurring a monthly loss of Rs600 million, which forced the government to take the difficult decision of dissolving it.
Special package for employees
Chaudhry added that Prime Minister Shehbaz Sharif directed the Finance Minister-led committee to devise a relief plan for employees. After more than four meetings, the committee finalized a Rs28 billion package to provide financial security to contract workers affected by the closure.
He assured that the government recognized the services of employees and sought to mitigate the impact of the decision through this financial support.
The decision comes as part of broader government measures to reduce losses by closing down around 1,700 utility stores across the country. The approved package aims to ensure that employees are not left without income during the transition.
