Govt to shut down 1,100 loss-making utility stores
Business
The initial estimated value of utility store properties is Rs 8 billion.
ISLAMABAD (Dunya News) – The federal government has decided to shut down 1,100 loss-making utility stores under the privatisation plan.
A meeting of the Senate Standing Committee on Industries and Production, chaired by Senator Aun Abbas, was held to discuss the future of the Utility Stores Corporation.
According to the Ministry of Industries and Production, 1,500 out of 2,600 utility stores will continue operating before privatisation.
Meanwhile, the Senate Standing Committee on Industries and Production has taken notice of rising sugar prices and summoned the Competition Commission and sugar mill owners.
During a meeting chaired by Aun Abbas, the committee called for an inquiry into high sugar prices. Aun Abbas Bappi noted that 44% of the country's sugar mills belong to politically influential families. He questioned why sugar prices increased despite the government allowing the export of 700,000 tons this year when there was a surplus.
The Managing Director of Utility Stores briefed the committee, stating that the privatisation of utility stores has been delayed due to a pending audit, which is now set to be completed by August 2025.
The initial estimated value of utility store properties is Rs 8 billion. Currently, there are 5,000 regular employees and nearly 6,000 contract and daily wage workers, with the latter set to lose their jobs after privatisation.
Officials revealed that 800 loss-making utility stores have already been shut down, leaving only 1,500 profitable ones in operation. The closure of loss-making stores has reduced monthly expenses from Rs 1.02 billion to Rs 520 million.
