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ECC Approves Rs30.2bn Grant for Closure of Utility Stores Corporation
ECC approves Rs30.2bn grant to close Utility Stores Corporation, ensuring dues & compensation for 11,000 affected employees. Assets to be sold within FY25 to cover costs.
ND
by News Desk
2025-08-28
ECC Approves Rs30.2bn Grant for Closure of Utility Stores Corporation

The Economic Coordination Committee (ECC) of the federal cabinet on Thursday approved a technical supplementary grant of Rs30.216 billion to ensure the smooth closure of the Utility Stores Corporation (USC) of Pakistan.

The USC, established in 1971, was a state-owned enterprise tasked with providing essential commodities at subsidised rates to low-income households. Once operating over 4,000 outlets across the country, the USC formally ceased operations at the end of July 2024.

According to a press release issued by the Finance Division, the ECC’s decision represents a “major step in responsibly addressing the longstanding financial burden of USC on the national exchequer.” The grant is designed to cover severance packages, compensation, and outstanding dues, protecting the welfare of employees affected by the closure.

Finance Minister Senator Muhammad Aurangzeb chaired the ECC meeting, which was attended by Food Security Minister Rana Tanveer Hussain, Commerce Minister Jam Kamal Khan, Power Minister Sardar Awais Ahmad Khan Leghari (virtually), Special Assistant to the PM for Industries and Production Haroon Akhtar Khan, as well as senior officials from relevant ministries and regulatory bodies.

The ECC directed the Ministry of Industries and Production to rationalise the financial requirements for winding up USC. It was also decided that USC’s assets, including properties, would be sold within the current financial year to partially offset the costs of closure.

The government emphasized that the process must be carried out in an “orderly and transparent manner,” balancing fiscal discipline with employee welfare.

Earlier this week, the National Assembly Standing Committee on Privatisation was informed that Rs27 billion in dues to USC employees and vendors would be cleared in two phases. However, concerns remain after the Public Accounts Committee last week urged the government to reform USC’s management instead of shutting it down, warning that the closure would result in the loss of over 11,000 jobs.

The approved package is expected to cushion the economic and social impact of USC’s closure while ensuring a controlled disposal of its assets and liabilities.

 
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