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Utility Stores Corporation Shuts Down 1,800 Outlets Due to Heavy Losses

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5 min read
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Legal Editorial Desk
Utility Stores Corporation Shuts Down 1,800 Outlets Due to Heavy Losses
The Utility Stores Corporation (USC) has closed 1,800 of its stores across the country due to significant losses. Sources told ProPakistani that this closure will result in approximately 3,000 temporary employees becoming jobless. Previously, 2,800 daily wage employees were also laid off. However, around 600 daily wage workers were later reinstated. Sources indicate that the USC aims to reduce its expenditures from Rs. 1.02 billion to Rs. 500 million. A Voluntary Separation Scheme (VSS) was offered to permanent employees with over 25 years of service, but so far, not many permanent employees have shown interest in the scheme. Permanent employees currently working at Utility Stores are reportedly concerned about their future. Suppliers to the USC are also worried, as the stores owe them Rs. 16 billion in outstanding payments. These suppliers have expressed their apprehension over the closure of the stores.
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Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.

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