Utility stores' closure on the cards

ISLAMABAD: In a bid to reduce expenses, the federal government is considering closing the utility stores countrywide, secretary industries and production confirmed on Friday.

During the Senate Standing Committee’s meeting here, Senator Saifullah Niazi asked if the government was considering closing all the utility stores.

Secretary industries and production Saif Anjum confirmed the development saying work was underway to transfer the utility stores employees to other departments, reports Geo News.

“The government wants to get out from the unnecessary businesses,” the official said, claiming that providing subsidy to the utility stores was detrimental to the market competition.

He told the committee members that an alternative arrangement would be explored to provide relief to the deserving people which may include cash transfer.

According to the Utility Stores Corporation (USC) management, the government had given them two weeks to wrap up issues with the companies, while the Rs50 billion subsidy, which previously offered significant relief to around 26 million deserving households, has been halted.

The USC management said over 11,000 employees, including 6,000 permanent staff, were worried over the impending closure.

Speaking to Geo News, Atif Shah, General Secretary All Pakistan Workers Alliance, said the Utility Stores Corporation (USC) wasn’t a burden on the national exchequer.

“The government collects Rs120 billion in taxes annually from the companies in the form of groceries sale,” he said, noting that Rs25 billion was being paid by the USC, making 18% of the total amount.

Furthermore, Shah said they didn’t get funds from the government and the salaries of all the employees were “self-generated”.

He claimed that the government owed Rs20 billion to the USC.

Meanwhile, the USC management has decided to seek help from the parliament, with sources claiming that they would reach out to the National Assembly and Senate’s Standing Committees on Industries and Production.

The standing committees would be apprised of the impacts of utility stores closure, sources said, adding that they would be asked to take up the issue in parliament.

The move would severely impact millions of low-income families, who have long relied on discounted goods.

The government’s decision also prompted protests, as the USC employees have staged a protest outside their regional office at Scheme Mor in Lahore. The protesters, carrying placards and chanting slogans, demanded that the government revert its decision.

Meanwhile, in a paradigm shift, the government has started working on the rightsizing of the federal government under which the commerce ministry and board of investment (BOI) would be merged into the ministry of industries and production.

Prime Minister Shehbaz Sharif had issued certain directions on August 16 to various ministries to make doable recommendations and firm up proposals within various stipulated time lines, discloses an official document.

A committee shall be constituted to entertain the representation of aggrieved employees.

Having quasi-judicial powers, the committee is represented by the retired Superior Courts judges. In this regard, the Law and Justice Division shall propose the committee and its ToRs.

The Law Division and Establishment Division will firm up the plan and submit it to the Prime Minister Office within two weeks.

In addition, a committee on Civil Service Reforms shall also be constituted which will work in tandem with the rightsizing committee already constituted for the purpose.

The Ministry of Industries and Production will lead the commerce ministry and Board of Investment in finalizing the merger proposals.

The phase-II of the rightsizing exercise shall comprise five ministries which include the Board of Investment, Ministry of Commerce, National Food Security Research, Housing and Works and Science and Technology

In addition, the National Fertilization Corporation (NFC) and National Fertilizer Marketing (NFM) would also be wound up.

The Ministry of Industries and Production has been asked to make the proposals within one month and submit them to the PM Office.

The National Information Technology Board (NITB) would also be wound up and the procurement of IT equipment and software shall be executed by the procuring agencies individually.

The Information Technology and Telecommunication will submit its plan regarding the winding up of NITB to the PM Office.

The pricing function of DRAP (Drug Regulatory Authority of Pakistan) will be separated under the existing DRAP Act, 2012. And to this effect, the National Health Services, Regulations & Coordination and Law and Justice will make the proposal in two weeks.

In addition, the Small and Medium Enterprises Development Authority (SMEDA), presently working under the Ministry of Industries and Production, will be placed under the PMO. The Ministry of Industries and Production and Cabinet Division will finalize the plan to this effect which is to be furnished with the PM Office in one month.

Privatization of Pakistan Engineering Company, Republic Motors Limited, Sindh Engineering Private Ltd, and State Engineering Corporation shall be considered in Phase-I of the privatization process.

The Pakistan Engineering Company Limited (PECO) will be privatized on ‘as is where is’ basis. In this regard, a presentation shall be made by the Privatization Division within two weeks that is to be submitted to the PM Office.

The proposal regarding the transfer of Pakistan Gems and Jewelry Development Company and Pakistan Gems and Jewelry Development Authority shall be reviewed further by the Rightsizing Committee. Minister for Finance, as chairman of the rightsizing committee, will submit the proposals in two weeks.

A transition plan would be chalked out to devolve Pakistan Institute of Medical Sciences, Federal Government Services Hospital (Polyclinic), National Institute of Rehabilitative Medicines (NIRM), Federal General Hospital Health Department (DHO-ICT), Directorate of Malaria Control, Primary Health Center facilities i.e. BHU, RHC, to the relevant organizations and entities, within one year. National Health Services, Regulations & Coordination will submit proposals to the PM Office in one month.

A committee shall be constituted to work out modalities for the utilization/disposal of Jammu & Kashmir properties in consultation with relevant stakeholders i.e. AJK and GB.

The sale proceeds, if any, shall be utilized for the welfare of Kashmiri people. The Directorate of Health Services, AJK shall be transferred with its existing role and function to the Government of AJK keeping in view the donor-funding considerations in light of views of secretary, National Health Services, Regulations & Coordination. The draft bill on Pakistan Digital Authority shall be finalized within one week in consultation with relevant stakeholders.

On Friday, Prime Minister Shehbaz Sharif chaired a meeting on matters related to the Small and Medium Enterprises Development Authority (SMEDA), emphasizing the crucial role of SMEs in Pakistan’s economy.

He said the small and medium enterprises act as the back bone of the country’s economy.

Expressing dismay over the non-functioning of the SMEDA Board, the prime minister directed its immediate constitution, stressing that boards of all institutions vital for the country’s economy, should be established without delay. Additionally, he called for promoting sub-contracting in industries and taking all possible measures to integrate Pakistani industries into the global supply chain.

The prime minister also ordered to take necessary steps to ensure appointment of the SMEDA’s Chief Executive Officer.

Additionally, he also directed to include the people from the private sector in the steering committee.