6,000 Utility Store employees to lose jobs amid privatisation plans

The Managing Director (MD) of Utility Stores Corporation has confirmed that 6,000 contractual and daily-wage employees will be laid off as part of the government’s privatization plan, while 5,000 permanent employees will be transferred to a surplus pool.

During a briefing to the Senate Standing Committee on Industry and Production, chaired by Senator Aon Abbas, the MD stated that the privatization process had been delayed due to a pending two-year audit.

The audit is expected to be completed by August 2025, after which the privatization process will proceed.

The MD revealed that there are currently over 3,020 utility stores across the country, but 1,700 non-profitable outlets will be shut down, leaving only 1,500 operational stores under private management.

The corporation’s monthly expenses were previously Rs. 1.02 billion, which has now been reduced to Rs. 520 million due to cost-cutting measures, including store closures.

Additionally, the committee expressed concerns over the absence of Special Assistant Haroon Akhtar and the Secretary, criticizing their lack of participation in the discussion.

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The committee also sought a briefing on the role and functions of the Sugar Advisory Board, questioning the rationale behind sugar exports despite surplus stock and subsequent price hikes.