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Utility Stores to Be Handed Over to A Pubblic-Private Partnership

5 min read
Legal Expert
Utility Stores to Be Handed Over to A Pubblic-Private Partnership
Minister for Industries announced that Utility Stores will be run under a public-private partnership to curb financial losses and improve operations. During a meeting of the National Assembly’s Standing Committee on Industries and Production, Minister Rana Tanveer Hussain clarified that the government is not shutting down Utility Stores but rather restructuring them to ensure sustainability. He stated that billions of rupees in losses necessitate a new approach, adding that permanent employees’ futures will be secured. However, he emphasized that even regular Utility Stores employees are not government servants. The committee members expressed strong dissatisfaction over the absence of the Secretary of the Ministry of Industries and Production. Committee member Mehreen Razzaq Bhutto questioned why the secretary was missing when the chairman and other members were present. The committee also reviewed the ministry’s development budget proposals for the next fiscal year. Chairman of the committee disclosed that the ministry had a budget of Rs. 4.91 billion in the last financial year but utilized only Rs. 22.09 million for development projects. Tensions rose when an executive engineer (XEN) from Pakistan Steel Mills briefed the committee on behalf of the ministry. Committee members were furious over this arrangement, with Abdul Hakim Baloch questioning how an XEN could represent the ministry. He criticized the ministry’s officials for their absence, stating that their only visible action seemed to be firing employees rather than addressing key issues. The chairman announced that the Pakistan Steel Mills issue would also be taken up during the session. Minister Rana Tanveer Hussain voiced frustration over the committee’s decisions being made without prior consultation. He urged that the ministry be involved in the planning process, stressing that critical matters should not be handled like a monarchy. He dismissed rumors of Utility Stores’ closure, insisting that reforms were necessary. He pointed out that numerous small Utility Stores had been opened in single rooms across different cities, which was not a sustainable business model. The committee also decided to call Utility Stores representatives and members of the Pakistan Peoples Party (PPP) to discuss the issue further. Mehreen Razzaq Bhutto reminded the minister that he had previously assured the Assembly that the stores would not be shut down, yet now he was discussing layoffs. She argued that Utility Stores, if managed properly, could become a profitable institution. Referring to the expansion of Utility Stores in local neighborhoods, she remarked that this was, in fact, aligned with Bhutto’s vision of providing affordable essentials to the masses.
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Written by the expert legal team at Javid Law Associates. Our team specializes in corporate law, tax compliance, and business registration services across Pakistan.

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