The Prime Minister’s Special Assistant in Industries and Production Haroon Akhtar Khan said the government decided to close Utility Stores Corporation (USC) operations to prevent it from turning into “another Pia”, a step affected by 6,000 employees.
The National Assembly’s standing committee for industries and production met in Islamabad on Tuesday to discuss the closure. Industries and production secretary Saif Anjum and Haroon Akhtar participated in the session.
Saif Anjum informed the Committee that all USC operations had been closed in accordance with the government’s deadline on July 31.
He added that emergency packages for the employees had been approved and would be paid within 15 days.
Read: 6,000 utilities to be laid off
In July, a high -level committee decided that all operations in the Utility Stores Corporation (USC) would shut down by July 31. The RS30 billion was approved to oversee the transition, with funds awarded as a technically supplementary subsidy for settlement costs and employee protection.
Of the total amount, RS19 billion has been earmarked for employee relief packages, up from the previously planned RS15 billion.
The Economic Coordination Committee and Cabinet approved the packages in accordance with the business rules. The government also plans to sell 21 USC properties.
Confusion arose during a meeting of the National Assembly’s Standing Committee for Industries and Production, where the President noted that the Minister had previously declared that USC operations would not be stopped.
The Prime Minister’s Special Assistant in Industries and Production Haroon Akhtar Khan said the closure was decided “with a heavy heart,” added: “Nowhere in the world runs governments businesses. If it does, losses are inevitable.” He further clarified that the International Monetary Fund had ordered the government to either reduce losses or close USC operations.
Read more: Auxiliary stores to shut down before July 31
The government closed Utility Stores Corporation (USC) due to financial restrictions, resulting in termination of 6,000 employees.
Officials said that widespread corruption and the burden of subsidies made the organization unsustainable. “We needed the RS20 to 25 billion to run auxiliary shops for two years,” an official of the National Assembly Standing Committee for Industries and Production told.
When committee member Mahesh Kumar asked for the decision to be reconsidered, industries and production secretary Saif Anjum replied that all operations had already ceased.
A high-level committee that was set up in July had recommended closure of USC operations by July 31. The RS30 billion was approved to control the closure, including employee relief packages.
During the session, the Prime Minister’s special assistant in industries and production also called on Haroon Akhtar Khan for reflection on resuscitation of Pakistan Steel Mills with Russian assistance and added that a decision would be completed at the end of the month. “If any institution is revived, the government will do everything for it,” he said.
