Govt Scams Utility Stores Employees Into Working Without Pay

The federal government has stopped paying salaries to Utility Stores Corporation (USC) employees while keeping them working at the state-run outlets under threat of suing them for the losses incurred by the entity. Sources privy to the matter told ProPakistani that USC abruptly stopped paying salaries to thousands of contractual employees from BPS-01 to BPS-13, despite a court ruling that directed the corporation to continue payments until the legality of their termination is resolved. The affected employees were paid for the previous month but stopped getting paid in April. In an internal letter dated 3rd May 2025, the Zonal Manager of USC’s Lahore Zone directed the Head Office in Islamabad to withhold the April salaries of all contractual staff from BPS-01 to BPS-13 due to the ongoing termination process and the possibility of future recoveries from employees serving as store and warehouse in-charges. “It is requested that the salaries of all the contractual employees from BPS-01 to BPS-13 for April 2025 be stopped immediately till the finalization of the said process to avoid losses to the corporation,” the notice reads. It is illegal to stop salaries as done here on the assumption that the employees may owe the corporation money in the future, a legal expert informed ProPakistani when requested for their opinion. This practice of holding employees responsible for in-storage losses has been prevalent for many years. USC was previously holding store in-charges responsible for financial losses incurred during storage and transport. Employees were pressured into paying these losses personally, under threat of disciplinary action, with the understanding that their jobs would be safeguarded. However, many lost their jobs shortly after settling these so-called dues earlier this year. This year, workers continued performing their duties through April, but their salary payouts were canceled. Last month, salaries were released in compliance with the court’s interim order. However, this month their pay has been withheld, which is exploitation and in bad faith. Thousands of affected employees are currently jobless, unpaid, and without severance benefits. USC needs to treat its workforce better before being shut down for good.