Islamabad, March 21, 2025 – The Utility Stores Corporation (USC) is set to undergo a major overhaul as the government pushes forward with privatisation plans, sparking concerns over job losses and operational sustainability. In a recent Senate Standing Committee on Industries and Production meeting, chaired by Senator Aoun Abbas, the USC revealed that 5,000 permanent employees will be shifted to a surplus pool, while 6,000 contract and daily-wage workers face immediate layoffs without severance packages.
The managing director of USC disclosed that the privatisation process, originally slated for earlier completion, has been deferred until August 2025 due to an incomplete two-year audit. “We cannot proceed without financial clarity,” the director stated, underscoring the need for transparency before handing over operations to private entities. Mass Layoffs Loom as Utility Stores Corporation
Currently, USC operates 3,200 stores nationwide, but over half—1,700—are running at a loss and are earmarked for closure. Post-privatisation, only 1,500 stores are expected to remain operational, significantly reducing the need for staff. The corporation has already slashed its monthly operational costs from Rs1.12 billion to Rs520 million by shuttering unprofitable outlets. Additionally, 1,000 franchises continue to function under the USC banner, though their future remains uncertain.
The committee meeting also exposed tensions over accountability, with members expressing frustration at the absence of Special Assistant Haroon Akhtar and the secretary, who were expected to brief on the Sugar Advisory Board’s role. Instead, the session veered into a heated discussion on rising sugar prices, despite a reported surplus in national stock.
Senator Abbas pointedly questioned the spike in sugar costs, noting that 44 per cent of Pakistan’s sugar mills are owned by influential political families. “With 700,000 tons of sugar exports permitted this fiscal year, why are domestic prices climbing?” he demanded. Abbas highlighted a pattern of price hikes toward the end of the crushing season, suggesting possible market manipulation. The committee resolved to summon the Competition Commission and sugar mill owners for a detailed inquiry in the next session.
As the USC braces for a leaner, privatised future, the fate of its 11,000-strong workforce hangs in the balance. Meanwhile, the looming sugar price probe signals a broader reckoning for industries straddling public policy and private interests. With economic pressures mounting, all eyes are on the government’s next steps.
