Workers’ Unions Extremely Unhappy With Govt’s Move to Close 1,000 Utility Stores

The All Pakistan Workers Alliance has strongly condemned the closure of over 1,000 Utility Stores and said this move disregards prior assurances from the federal government. In a statement, the alliance has announced plans to unveil an action strategy in response. The unions expressed frustration over not being consulted regarding the decision to shut down the outlets. They recalled assurances from Federal Minister Rana Tanveer that utility stores would not be closed and no employees would be laid off. The alliance also pointed out that the promised subsidy and restructuring consultations with unions had not materialized. The alliance demanded immediate payment of outstanding dues to the Utility Stores Corporation and urged the government to issue orders for the reopening of the closed stores. They accused the government of deliberately pushing a profitable institution into financial losses. Authorities are of the view that the closures stemmed from the discontinuation of subsidies on August 18, 2024, as maintaining outlets in every union council had become financially unviable. According to the Ministry of Industries and Production, the stores were either operating at a loss or generating low sales. Workers’ unions emphasized that continuing subsidies are essential for the corporation’s sustainable operations. It bears mentioning that so far, 446 outlets have been closed while the remaining will face a similar outcome based on their performances on a day-to-day basis. The corporation is also exploring the possibility of merging loss-making stores with profitable ones to optimize operations.