Govt Prepares Rs. 27 Billion Financial Package for Utility Stores Corporation

The National Assembly Standing Committee on Privatization expressed deep concern over the shutdown of Utility Stores operations and the government’s failure so far to clear outstanding dues of employees and vendors. The Ministry of Industries and Production briefed the committee that a financial package worth Rs. 27 billion has been prepared for the crisis-hit Utility Stores Corporation and will be presented for approval before the Economic Coordination Committee (ECC). According to officials, the package includes Rs. 15-18 billion for a Voluntary Separation Scheme (VSS) for employees, while Rs. 13.8 billion will be allocated to settle vendor liabilities. Currently, the corporation faces a staggering Rs. 54 billion in total debt, with the largest dues owed to the Trading Corporation of Pakistan and the Federal Board of Revenue (FBR). The secretary informed lawmakers that only 300 out of 10,000–11,000 employees will be retained temporarily until the privatization process is finalized, while the rest will receive payouts under the separation scheme. He assured that employees will be given “attractive compensation packages.” Officials revealed that government subsidies to Utility Stores were discontinued in August last year, while all operational activities were fully halted in July this year. The committee directed the ministry to submit full details of the compensation package and payment plan for employees at the next meeting.