As part of its privatisation strategy, the federal government has chosen to close 1,700 loss-making utility retailers all throughout the nation.

The choice was made public during a Senate Standing Committee on Industries and Production meeting headed by Senator Aun Abbas when authorities gave a thorough briefing on the future of Utility Stores Corporation (USC).

The committee was told the USC is on the government privatisation list, but the lack of an audit over the previous two years has caused the process to be postponed. Officials said that following August 2025, the audit is likely to be finished, so privatisation activities will start.

Although Pakistan has more than 3,200 utility retailers right now, about 1,700 of them are losing money and will be closed to help with the financial load. Only 1,500 outlets will still be open after privatisation, which will need a far lower workforce. Other staff members will be sent to a surplus pool.

Officials claim that although about 6,000 workers are on contract and daily pay, the Utility Stores Corporation employs about 5,000 permanent employees. Regular employees will be transferred to the surplus pool following privatisation; contract and daily pay workers will not get compensation packages and will be laid off.

The briefing stated that although the USC's monthly spending was Rs 1.02 billion, closing loss-making outlets had already helped to cut expenditures to Rs 520 million. Losses dropped Rs 220 million after a month, therefore lowering the whole financial deficit to Rs 500 million.

Thousands of workers and customers who depend on utility retailers for subsidised rates on basic needs are anticipated to be greatly affected by the ruling.

rn