Utility stores

The Utility Stores Corporation (USC) was formed in the 1970s to provide essential commodities, including sugar, flour and pulses, at a price lower than the open market’s. Around 4,500 stores were set up across Pakistan, offering subsidised items to people belonging to the lower middle class. The corporation also serves as a tool to counter the effects of the black market which creates an artificial shortage of essential items so as to sell them at higher prices. Over the years, the USC has become financially unviable due to a decrease in government subsidies, the excessive cost of running thousands of stores and the presence of strong competitors in the market. In addition, the government hasn’t cleared the pending Rs4 billion subsidy, making it difficult for the corporation to carry out its operation.

In a meeting held on Tuesday (Jan 30), the managing director of the USC told the Senate Standing Committee that around 80 percent of the stores are facing losses. The main reason behind the downfall of the USC is that all stores are being run on an outdated model. Remedial measures should be taken to bring the USC out of the quagmire of this financial crunch. Today when local and international big stores are entering the market, the already established stores need to think differently and come up with modern methods of running this chain of stores.

Ch Bilal Hassan

Lahore