Privatization of Utility Stores Corporation Delayed Due to This Reason

The Senate Standing Committee on Industries and Production, chaired by Senator Aun Abbas, convened to discuss the future of the Utility Stores Corporation (USC) and the rising sugar prices in the country. The Managing Director (MD) of USC informed the committee that the corporation is on the government’s privatization list. The privatization process has been delayed due to the lack of a two-year audit, which is expected to be completed by August 2025. An initial assessment of USC’s properties has already been conducted, and USC is on the second privatization list of the government. The MD of Utility Stores further briefed the committee that USC currently employs 5,000 regular employees and approximately 6,000 contract and daily wage employees. Regular employees will be sent to a surplus pool, while contract and daily wage employees will not receive any packages. These employees will be terminated once the institution is privatized, and 1,700 loss-making USC stores will be closed. After privatization, only 1,500 stores will require staff. USC has approximately 1,000 franchises. The monthly expenses of USC were Rs. 1.02 billion, which have now been reduced to Rs. 520 million after closing loss-making stores. This closure has decreased monthly losses by Rs. 220 million. The committee expressed displeasure over the absence of Special Assistant Haroon Akhtar and the Secretary of Industries. The committee had requested a briefing on the role and functions of the Sugar Advisory Board. The committee has summoned the Competition Commission of Pakistan (CCP) to the next meeting. Chairman Aun Abbas stated that 44% of sugar mills in the country are owned by political families. He questioned why sugar prices have increased despite the government allowing the export of 700,000 tons of sugar in the current fiscal year. He alleged that sugar mill owners raise prices at the end of the crushing season. The committee has summoned the CCP and sugar mill owners to inquire about the price increase.