Islamabad:
The government has decided to dismiss daily payroll employees from utilities across the country as part of its “rights” policy, revealed sources on Saturday.
The move, which affects an estimated 2,500 to 2,600 workers, was previously approved by the Board of Utility Stores Corporation (USC).
According to sources, directives have already been issued to terminate the employees of the respective zonal offices, signaling the start of the degradation process.
The redundancies are in line with the government’s broader policy of rationalizing the workforce and reducing expenses.
The decision comes as part of the ongoing restructuring efforts within the USC, which has been under financial burden. While officials have cited financial challenges and efficiency problems as the cause of the cut, the move is expected to face resistance from affected employees and unions.
The USC board had considered the case in previous meetings, which ultimately concluded that it was necessary to reduce the number of daily payroll employees to adapt to budgetary limitations and operational efficiency goals. The government’s “rights” policy aims to streamline surgery in state units, which potentially affect other sectors in the future.
It is relevant to note that Federal Minister for Industries and Production, Rana Tanveer Hussain, recently clarified that the government has no plans to close supply stores, but will restructure them instead.
In response to concerns raised in the National Assembly of PPP leader Raja Pervaiz Ashraf, he assured that stores would continue to operate, although reforms were needed to improve efficiency.
The Minister noted that auxiliary stores were originally set up to deliver affordably important goods, but many were established in unnecessary places due to political influence. He acknowledged cases of political appointments in the organization, which would be dealt with during restructuring while assuring that ordinary employees’ jobs remained safe.
It is worth noting that there were rumors that the government would interrupt subsidies on sugar, wheat and cooking oil.
In December 2024, another proposal was considered to close 1,000 loss-making of USC businesses nationwide. However, another proposal was to restructure the company to improve its financial sustainability.
The government is facing the scary task of accommodating the USC’s 3,800 employees. Industries and Production Minister repeatedly said the government had no intention of closing the USC.
In January, the Economic Coordination Committee approved RS1.7 billion to settle the pending obligations of the USC under the Prime Minister’s Emergency Aid Package. However, no additional budget was set aside for the upcoming Ramazan Nut -Nut Aid Package.
