ISLAMABAD: The Senate Standing Committee on Industries and Production was informed on Friday that the Utility Stores Corporation (USC) was all set to shutter 1,700 outlets and slash thousands of jobs as part of a delayed privatisation drive.
The state-run chain, grappling with Rs14 billion in liabilities, employs over 11,000 workers, most of whom face uncertain futures amid the restructuring.
Briefing the Senate panel, the USC officials said 5,000 regular employees would be transferred to a surplus pool while 6,000 contract and daily-wage workers would receive no severance as operations downsize. The USC’s privatisation is stalled pending a two-year audit, expected to conclude by August 2025. Its properties, last valued at Rs8.3 billion, have already been assessed.
The USC managing director informed the committee that the estimated value of immovable assets of the corporation was around Rs8.3 billion as per 2020 and 2021 estimates. However, the USC has a liability of around Rs14 billion.
Senator Aoun Abbas, chairing the session, pressed the Ministry of Industries to ensure transparency in workforce decisions as employees express growing anxiety.
The panel also took aim at Pakistan’s sugar sector, questioning soaring prices despite allowing 700,000 tons of exports this fiscal year. Abbas highlighted that 44 per cent of sugar mills are owned by political families and criticised price hikes following the crushing season.
It also reviewed the Sugar Advisory Board’s role in controlling sugar prices. Officials clarified that the board, with recommendatory status, monitors the National Sugar Policy, production, exports, and imports but does not fix retail prices.
Senators resolved to summon the Competition Commission of Pakistan (CCP) and sugar mill owners to investigate possible market manipulation.
Frustration mounted over the repeated absence of the Industries secretary, with Abbas warning the official to appear at the next meeting. The session was attended by Senators Masroor Ahsan, Saifullah Sarwar Khan Nyazee, Husna Bano, Danesh Kumar, USC MD Faisal Nisar Chaudhry, and other officials.
