Govt Approves Rs. 30 Billion Package to Wind Up Utility Stores, Pay Workers

The Economic Coordination Committee (ECC) of the Cabinet, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, has approved a technical supplementary grant of Rs. 30.216 billion to facilitate the smooth closure of the Utility Stores Corporation (USC) of Pakistan.

Ensuring Employee Welfare

This decision marks a significant step toward addressing the long-standing financial burden of USC on the national exchequer, while also protecting the rights of employees affected by the closure.

The approved package includes provisions for severance pay, compensation, and settlement of outstanding dues to ensure that workers receive their entitlements, thereby minimizing the social and economic impact of the corporation’s shutdown.

Rationalization and Asset Disposal

The ECC further directed the Ministry of Industries and Production to rationalize the financial requirements for USC’s closure. It was decided that USC’s assets, including properties, will be disposed of within the current financial year. The proceeds from asset sales will be used to partially cover the costs associated with winding down operations.

The Cabinet body emphasized the importance of carrying out the closure in a transparent and orderly manner, ensuring accountability in the disposal of properties and fair treatment of employees.

Commitment to Fiscal Discipline

The approved financial package reflects the Government’s dual commitment: safeguarding the welfare of USC’s workforce while maintaining fiscal responsibility in the process of winding up the loss-making entity.

Meeting Participants

The meeting was attended by Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Power Sardar Awais Ahmad Khan Leghari (virtually), Special Assistant to the Prime Minister for Industries and Production Haroon Akhtar Khan, as well as federal secretaries and senior officials from relevant ministries, departments, and regulatory institutions.