In a larger feature, the Utility Stores Corporation (USC) has launched a large -scale restructuring, resulting in termination of nearly 3,000 employees in a single day.

According to reports, the dismissal order was issued on a holiday with the first phase of the restructuring focusing on dismissal of daily wage workers.

Reports show that most of the dismissed employees had been with the company for over 10 years. In the next phase, thousands of contract workers are also expected to be completed.

This restructuring follows a recent decision by the federal government when on January 22 the federal cabinet formed a committee to review the potential closure of USC operations.

Sources of government revealed that the committee will be led by the Federal Minister of Industries and Production, and will include key figures such as the Prime Minister of Finance and Revenue, the Prime Minister for it, as well as senior officials from the ministries of the ministries Finance, Industries, Privatization and Benazir Income Support Program ( Bisp).

In August 2024, the federal government made the decision to close Utility Stores Corporation (USC). Prime Minister Shehbaz Sharif sought proposals regarding the closure, and as part of this process, the government also ceased an RS 50 billion subsidy for the USC.

In addition, in a meeting with the President of the Prime Minister, a decision was made to reduce administrative costs and streamline the state machinery, which led to the closure of 28 departments in five ministries. These included the Ministry of Kashmir affairs and Gilgit-Baltistan, the Ministry of States and Frontier regions, the Ministry of Information Technology and Telecommunications, the Ministry of Industries and the Ministry of National Health Services.

The Ministry of Industries and Production also included the USC on the privatization list in August 2024.

On November 15, 2024, during a senate’s standing committee meeting on industries and production, federal minister Rana Tanveer Hussain revealed that 3,000 of USC’s 11,000 employees had been employed during the term of office by former Punjab chief minister Manzoor Watto, who recruited them from Tehsil by Dera Ghazi Khan.

Minister Tanveer confirmed that although the discussions had taken place to close the USC, the Ministry of Industries and Production had against the move. He also noted that many stores in Balochistan and Gilgit-Baltistan operated with a loss, with 2,400 out of 4,300 stores reporting financial deficits.