The federal government has officially announced that Utility Stores Officially Closed in Pakistan from today, bringing an end to all operations of the Utility Stores Corporation (USC) across the country. This historic decision impacts thousands of employees and vendors who had long been connected with the state-run chain.
During a press conference, Federal Minister Tariq Fazal Chaudhry explained that the decision was unavoidable as USC had been suffering consistent monthly losses of nearly Rs 600 million. He emphasized that continuing operations under such heavy losses was not financially sustainable for the government.
To support workers affected by the closure, a comprehensive relief and severance package worth Rs 28.2 billion has been approved. For the first time in Pakistan, this package will cover not only permanent employees but also contract and daily-wage staff—ensuring that no worker is left behind in this transition.
In addition, the government has allocated Rs 2 billion for small vendors who regularly supplied goods to USC outlets, while larger vendors will be compensated at a later stage. Pending salaries of the last one and a half months will also be cleared to provide immediate financial relief to employees.
The Economic Coordination Committee (ECC) has sanctioned a supplementary grant of Rs 30.216 billion to manage severance payments, vendor liabilities, and the transparent disposal of USC assets. Officials noted that these steps are essential to maintain transparency and fairness in the winding-up process.
A dedicated committee under the Finance Ministry has been formed to supervise the closure phase. With the involvement of both the Finance Ministry and the Ministry of Industries and Production, the government aims to ensure smooth execution as Utility Stores Officially Closed in Pakistan marks a major policy shift in the retail sector.
Official records reveal that prior to the shutdown, the Utility Stores Corporation employed between 11,350 and 11,614 workers, including permanent staff, contractual employees, and daily-wage earners.
With utility stores closed in Pakistan, the relief package distribution has been announced as follows:
- Rs 13.5 billion for permanent employees
- Rs 6 billion for contract employees
- Rs 2 billion for daily wagers
- Rs 2 billion for small vendors
Utility Stores Background
The Utility Stores Corporation (USC) was founded in 1971 and grew to become the country’s largest chain of government-subsidized outlets, offering essential goods at controlled rates. With over 5,500 outlets and more than 12,000 employees by 2009, it played a major role in food security before Utility Stores Officially Closed in Pakistan.
Despite its vast reach, the corporation consistently suffered heavy financial losses. As of September 2025, when Utility Stores Officially Closed in Pakistan, the long-standing system of delivering subsidized food items officially came to an end, leaving behind a significant chapter in Pakistan’s economic history.
The closure of USC is part of the broader privatization and restructuring of loss-making state-owned enterprises. Now that Utility Stores Officially Closed in Pakistan, low-income households who previously relied on subsidized products must turn to private retailers and government-led subsidy programs for affordable essentials.
According to economists, this move reflects a larger fiscal adjustment strategy aimed at reducing financial burdens on the state. However, with Utility Stores Officially Closed in Pakistan, concerns have grown about the ability of vulnerable households to maintain access to low-cost essential goods in the future.
FAQs on Utility Stores Officially Closed in Pakistan
Why did the government decide to close the Utility Stores Corporation?
The closure was announced due to consistent monthly losses of around Rs 600 million, which made the corporation financially unsustainable.
What benefits or compensation will USC employees receive after the shutdown?
A relief and severance package worth Rs 28.2 billion has been approved, covering permanent staff, contractual workers, and daily wagers.
How will the closure affect small and large vendors linked to USC?
The government has set aside Rs 2 billion for small vendors, while larger vendors will be compensated later, ensuring fair financial support.
What does this decision mean for low-income households in Pakistan?
With the closure of USC, families that relied on subsidized essentials will now turn to private retailers and government-backed subsidy programs.