The federal government has initiated steps to privatize the Utility Stores Corporation (USC), triggering widespread protests and the closure of hundreds of outlets across the country, sources confirmed on Monday. In a major downsizing move, the USC administration has laid off over 2,800 small contract employees, while preparations are underway to forcibly retire more than 5,000 permanent staff members, according to officials familiar with the development.

Sources further revealed that 509 additional contract workers are also expected to be dismissed in the coming weeks. The decision, reportedly driven by a broader plan under the second phase of the federal government’s privatisation programme, has prompted severe backlash from employees, who have shut down utility stores nationwide in protest. Out of the 3,542 utility stores operating across Pakistan, nearly 1,800 have already been closed, sources confirmed. 

Officials at the Ministry of Industries and Production said the workforce reduction is part of ongoing restructuring efforts, amid growing disinterest among employees in the voluntary separation or golden handshake schemes previously offered by the administration.Among the total utility outlets, 2,539 are considered part of the regular store network, according to internal assessments.

In addition to the controversial layoffs, the Utility Stores Corporation is also facing serious financial challenges. Despite a federal allocation of Rs60 billion for the current fiscal year, including a Rs10 billion Ramadan relief package and a Rs50 billion regular grant, none of the funds have been disbursed so far, sources claimed.

Credit: Independent News Pakistan (INP)