Closure of Utility Stores Corporation of Pakistan – A Detailed Overview from Inception to Shutdown

The Utility Stores Corporation of Pakistan (USC) was one of the largest government-run retail chains in the country. Established in 1971, USC aimed to provide essential food and household items to the citizens of Pakistan at subsidized prices. Over the decades, it became a lifeline for low-income families, particularly during times of economic instability and inflation.

Objectives of Utility Stores Corporation

The primary goals of USC were:

To provide relief to the general public through the availability of daily-use commodities at affordable rates.
To act as a price stabilizer in the open market.
To serve as a distribution channel for government-subsidized food during Ramadan and emergency times (e.g., natural disasters).
To reduce the dependence on middlemen and hoarders, thus controlling artificial price hikes.

Key Targets and Expansion Plans

USC had a clear vision to:

Expand to all tehsils and districts of Pakistan.
Introduce modern retail practices and upgrade infrastructure.
Digitize inventory and customer billing systems.
Provide special relief packages during Ramadan, Eid, and national emergencies.

By 2022, USC had over 5,000 outlets nationwide and had served millions of citizens, especially during inflation crises and COVID-19 lockdowns.

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یوٹیلیٹی اسٹورز کارپوریشن کی بندش – ایک نظر میں

یوٹیلیٹی اسٹورز کارپوریشن، جو 1971 میں قائم ہوئی تھی، عوام کو سستی اور سبسڈی والی اشیاء فراہم کرنے کا اہم ادارہ تھا۔ یہ ادارہ کم آمدنی والے طبقے کے لیے ایک بڑی سہولت تھا اور مہنگائی کے دنوں میں ایک ریلیف چین کے طور پر کام کرتا رہا۔

31 جولائی 2025 کو حکومت نے وزیرِاعظم کی ہدایت پر اس ادارے کو بند کرنے کا فیصلہ کیا۔ اس فیصلے سے 14,000 سے زائد ملازمین بے روزگار ہو گئے ہیں اور لاکھوں شہری سستی اشیاء سے محروم ہو گئے ہیں۔

بندش کی وجوہات میں مالی نقصان، انتظامی کمزوریاں، سیاسی مداخلت، اور پرائیویٹ سیکٹر کو ترجیح دینا شامل ہیں۔ تاہم، اس اچانک فیصلے سے غریب خاندانوں کو شدید نقصان پہنچا ہے اور عوامی فلاح کے ایک اہم ادارے کا خاتمہ

Utility Store Corporation Of Pakistan Closure of Operation Orders

Achievements of Utility Stores Corporation

Despite political and financial challenges, USC achieved several milestones:

Ramadan Relief Packages for over 20 years, offering up to 40% subsidies on basic items like flour, ghee, pulses, and sugar.
Acted as a price regulator during peak inflation periods.
Generated employment for over 14,000 individuals, including zonal managers, store staff, warehouse workers, and administrative officials.
Provided a working model for government-private partnership, where local vendors and suppliers were directly linked to retail.
Introduced digital POS systems, stock monitoring tools, and mobile applications in recent years.

Workforce and Social Impact

More than 14,000 employees were directly associated with USC. These included:

Sales Officers
Store Managers
Warehouse Staff
Procurement Officers
Support Staff (daily wagers and part-timers)

Thousands of families were financially dependent on these jobs. The closure has now led to immediate joblessness, with no alternative employment plan announced by the government.

Reasons Behind the Closure of Utility Stores

As per the notification dated 31st July 2025, USC operations were formally shut down following directives from the Prime Minister and the decision taken in the 190th Board of Directors meeting.

Key reasons for closure:

Financial losses and mismanagement: Repeated audits showed inefficiencies, leakages, and a high rate of unaccounted inventory.
Political interference: Frequent changes in leadership and direction made long-term planning difficult.
Privatization drive: The government aims to reduce fiscal burden and shift to a private retail model.
Corruption allegations: Several senior officers were under investigation for embezzlement of subsidy funds.
Operational redundancy: With the rise of large private chains, some argued that USC had become outdated.

Impact on Poor Families and Citizens of Pakistan

The sudden closure of USC has caused significant economic and social harm:

For Employees:

Sudden job loss without severance packages or pension plans.
Uncertainty for families who relied on USC salaries for education, healthcare, and food.
Emotional distress and psychological trauma for workers close to retirement age.

For the Public:

Loss of subsidized items, especially in rural and underdeveloped areas.
Increased reliance on private stores, leading to higher prices for flour, ghee, rice, pulses, and sugar.
Citizens in Balochistan, South Punjab, and Tribal Areas face severe food access issues post-closure.
The collapse of Ramadan Relief Programs, affecting millions during the holy month.

Conclusion

The closure of Utility Stores Corporation of Pakistan in July 2025 marks the end of a significant chapter in the country’s public welfare initiatives. While inefficiencies did exist, the organization was still crucial for millions who could not afford market-rate groceries. The lack of a proper transition plan, employee resettlement scheme, or an alternate subsidy system is deeply concerning. Policymakers must reconsider the long-term impact of such abrupt decisions on the poor and working-class citizens of Pakistan.

FAQs

Q1: When did USC officially shut down?
A: USC operations officially ended on 31st July 2025, as per the government notification.

Q2: How many employees are affected by this closure?
A: Over 14,000 employees are now jobless due to the shutdown.

Q3: Will any other program replace USC for public subsidies?
A: As of now, no alternative scheme has been announced.

Q4: Can the decision be reversed?
A: Public pressure and political debate may influence future decisions, but nothing official has been stated.

Q5: What happens to the stock in USC stores?
A: Stocks are being shifted to warehouses and/or returned to vendors, as per the closure directive.