The federal government has decided to complete the sale and disposal of Utility Stores Corporation (USC) assets, including its properties, within the current financial year.
In addition, Rs. 15 billion allocated to the Ministry of Industries and Production in the current year’s budget will be used to clear sugar subsidy arrears of the Trading Corporation of Pakistan (TCP), Business Recorder reported citing sources.
According to details, the Ministry of Industries informed the forum on August 28, 2025, that USC was originally set up on September 3, 1971, to provide essential commodities at subsidized rates and function as a price stabilizer. The network saw massive expansion in 2007, when outlets increased from 1,023 to 5,557 and staff from 3,892 to 12,749 by 2009, leading to heavy reliance on subsidies to sustain operations.
Despite consistent government support, USC began reporting continuous losses from 2013 onward, which had accumulated to Rs. 23.8 billion by June 2025. The Federal Cabinet included USC in Phase-II of the active privatization list on August 13, 2024, and subsequently withdrew subsidies on August 16, 2024.
To curb losses, the USC Board approved a rightsizing plan in December 2024, cutting stores from 3,742 to 1,904 and staff from 11,614 to 7,710 by February 2025. However, even after downsizing, projected losses remained at around Rs8.315 billion annually.
On June 28, 2025, a summary was presented to the Prime Minister, outlining two options: shutting down operations by July 31, 2025, or continuing until privatization with a Rs14 billion bailout to settle vendor liabilities and stabilize finances.
The prime minister approved the first option, closure of USC operations by July 31, 2025, and formed a committee under the finance minister to oversee the winding-up process, fast-track privatisation, and arrange Voluntary Separation Scheme (VSS) payments for regular employees.
