Utility Stores Corporation Posts Rs. 2.5 Billion Loss in 3 Months

The Utility Stores Corporation (USC) has reported losses of Rs. 2.5 billion over the past three months due to poor government decisions, sources privy to the matter told ProPakistani. Sources in the Ministry of Industries and Production said the monthly financial losses of the corporation now exceed Rs. 800 million. Sources said an estimated 6,000 employees could lose their jobs if the government proceeds with closing 1,000 utility stores. Despite being declared a key state-owned enterprise under the SOE Act—which prohibits privatization—the government approved its privatization on August 13, 2024. Just days later, on August 15, the Economic Coordination Committee (ECC) sanctioned a subsidy for utility stores. Then on August 16, the Rightsizing Committee recommended closure, and by August 18, the government withdrew a Rs. 60 billion subsidy for the corporation. This abrupt policy reversal has created chaos and vendors have halted supplies to utility stores over pending dues. Sources said the subsidy cannot be removed without parliamentary authorization and this makes the government’s actions a potential violation of the law.