The federal government of Pakistan has reportedly finalised plans to close down the Utility Stores Corporation (USC), setting 31st July as the official deadline, according to sources familiar with the matter.
The move comes on the directive of Prime Minister Shehbaz Sharif, following a high-level meeting held on 28th June.
As part of the closure strategy, all USC employees will be offered a Voluntary Separation Scheme (VSS).
Sources say that Utility Stores outlets operating at a loss will be permanently shut down, while remaining branches are expected to be transferred to private ownership.
The process will be overseen by the Privatisation Commission, which has been tasked with managing the transition and keeping the Prime Minister updated on progress.
Read More: IMF ‘tasks’ Pakistan to terminate Utility Stores employees by June 30
The Ministry of Industries is also said to be coordinating in the execution of the wind-up plan.
The decision marks the end of the state-run retail chain, which has struggled with ongoing financial losses for several years.
Earlier, in May 2025, the International Monetary Fund (IMF) asked Pakistan to terminate additional Utility Stores Corporation employees by June 30 as part of its right-sizing policy.
According to sources, 2,237 daily-wage workers have already been sacked in the first phase and in the second phase, approximately 2,800 contract employees from grades 1 to 13 will be dismissed.
Employees in grade 14 and above will be transferred to a surplus pool by the same deadline, sources revealed.
The government has also decided to close an additional 1,000 financially weak Utility Stores by the end of the current fiscal year, reducing the total number from 5,500 to 1,500.
Daily-wage workers at these stores will also be terminated. The remaining stores are slated for privatization, as outlined in official documents.
Last fiscal year, Utility Stores received a Rs38 billion subsidy, but the Rs60 billion allocated for the current year has not been disbursed, sources confirmed.
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