ISLAMABAD – The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a technical supplementary grant of Rs30.216 billion to facilitate the “smooth” closure of the Utility Stores Corporation (USC).
The decision, taken at a meeting chaired by Finance Minister Muhammad Aurangzeb, will ensure an orderly shutdown of USC operations, which officials said had long been a burden on the national exchequer.
According to the finance ministry, the approved amount will cover severance packages, compensation, and outstanding dues owed to USC employees, ensuring their entitlements are paid and the social impact of the closure is minimised.
The ECC also directed the Ministry of Industries and Production to rationalise financial requirements for USC’s winding down, and decided that the corporation’s assets — including properties — should be sold within the current fiscal year to offset part of the closure costs. The committee stressed that the process must be transparent and carried out in a structured manner.
The meeting was attended by Federal Ministers Rana Tanveer Hussain (National Food Security), Jam Kamal Khan (Commerce), Sardar Awais Ahmad Khan Leghari (Power; virtually), Special Assistant to the Prime Minister Haroon Akhtar Khan (Industries and Production), and senior officials of relevant ministries and departments.
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In July, the federal government had announced the shutdown of all USC outlets nationwide. An internal notification, issued by the General Manager of Stores Operations and Services (SO&S), ordered that all sales and purchases at utility stores cease with immediate effect from July 31, 2025.
The decision followed the Prime Minister’s instructions issued on June 28 and the outcome of the USC Board of Directors’ 190th meeting on July 2. The move ends decades of government-run subsidised grocery operations that once served millions of low-income households across the country.
The USC, operating under the Ministry of Industries and Production, had faced persistent financial difficulties and mounting criticism over mismanagement and inefficiencies in recent years.
