Utility Stores to cease operations by July 31 as privatisation moves ahead

• PM attends panel meeting to oversee closure, privatisation plans.
• Voluntary separation scheme being designed for USC employees.
• PC to assess possible options for asset sales or full privatisation.

Finance Minister Muhammad Aurangzeb led a committee meeting of the Utility Stores Corporation (USC), confirming that all operations of the state-owned enterprise would be closed by the end of this month.

The meeting, held in Islamabad, was convened by the finance minister and attended by Prime Minister Shehbaz Sharif to oversee the closure and privatisation of the USC.

The committee was tasked with ensuring a smooth and transparent closure process by forming a suitable ‘voluntary separation scheme’ for USC employees and recommending a structured timeline for privatisation.

The meeting reviewed the progress made as per the duties assigned to it and engaged in in-depth discussions to chart a way forward.

The committee held extensive discussions on designing a fair and financially sustainable ‘voluntary separation scheme’ for the corporation's staff.

It also examined various dimensions of the separation scheme, including its projected size, potential fiscal impact, and legal and operational implications associated with its structure and rollout.

In addition, the committee recommended engaging the Privatisation Commission to explore the best approach and feasibility of fully privatising the USC or pursuing asset sales.

The chair constituted a subcommittee, headed by the Secretary of the Establishment Division, to facilitate a comprehensive analysis.

The subcommittee will examine the legal and operational aspects, contours, size, and structure of the proposed voluntary separation scheme and submit its report to the main committee by the end of the week.