Govt Allotted A Deadline For The Closure Of Utility Stores: July 2025 Update
The Government of Pakistan has issued an official notification for the closure of utility stores across the nation and has also set 31st July as a deadline for compliance to avoid any legal action.
This article will provide you with accurate information regarding new policies and majors set by the Government, therefore continue reading.
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31st July 2025: Deadline For Closure Of Utility Stores
According to reports, the Pakistani federal government has finalized preparations to shut down the Utility Stores Corporation (USC), with the formal deadline being July 31. The action follows a high-level meeting on June 28 and was ordered by Prime Minister Shehbaz Sharif.
USC Employees Offered VSS
A Voluntary Separation Scheme (VSS) will be made available to all USC workers as part of the closing strategy. According to information, Utility Stores locations that are losing money will be permanently closed, and the remaining locations will probably be turned over to private owners.
The Privatization Commission, which has been entrusted with managing the transition and informing the Prime Minister of developments, will supervise the process.
Importance Of This Decision
It is also claimed that the Ministry of Industries is coordinating the wind-up plan’s implementation.
The state-run retail chain, which has suffered from continuous financial losses for a number of years, will no longer operate as a result of the decision.
As part of its right-sizing policy, the International Monetary Fund (IMF) had already requested in May 2025 that Pakistan fire more employees of Utility Stores Corporation by June 30.
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Thousands of Workers to Be Sacked in Two Phases
Approximately 2,800 contract employees from grades 1 through 13 will be let go in the second phase, while 2,237 daily-wage workers have already been let go in the first phase, according to sources.
According to sources, workers in grade 14 and up will be moved to a surplus pool by the same date. By the end of the current fiscal year, the government also plans to eliminate 1,000 more financially troubled Utility Stores, bringing the total down from 5,500 to 1,500.
Privatizing The Remaining Stores
These stores will also lay off their daily pay employees. According to government papers, the remaining stores will be privatized.
According to sources, Utility Stores received a subsidy of Rs38 billion during the previous fiscal year, while the Rs60 billion allotted for this year has not yet been distributed.
Conclusion
The government has officially decided to close the Utility Stores Corporation due to ongoing financial losses, with a deadline of 31st July 2025. Thousands of employees will be laid off in two phases, and most stores will either be shut down or handed over to private owners. This step is part of the government’s right-sizing policy and economic reforms suggested by the IMF.