Govt set to shut utility stores by July 10

• Utility stores to cease operations by July 2 (today).
• PM-approved VSS package apply to affected employees.
• Zonal, regional managers to oversee shutdown process.

ISLAMABAD: The federal government is all set to shut down its public retail sector, the Utility Stores Corporation (USC) by July 10, The News reported on Wednesday.

With a large number of employees likely to be affected by the move, the voluntary separation scheme (VSS) package approved by Prime Minister Shehbaz Sharif will be applicable to all the affected employees.

The decision was formalised during a high-level meeting held on June 30 at the USC head office in Islamabad, chaired by the managing director of USC and attended by senior officials, including the Joint Secretary of the Ministry of Industries and Production and several general managers.

The development comes almost a year after Secretary of Ministry of Industry and Production Saif Anjum, back in August 2024, confirmed that the federal government is considering shutting down utility stores across the country.

The federal cabinet in January this year had announced its decision to halt operations of the state-run retail chain.

Meanwhile, according to the June 30 meeting's minutes available with the publication, essential staff will be retained temporarily to manage the affairs post-closure. A comprehensive VSS package will be developed for USC employees, and the record of all fixed assets will be compiled before the complete shutdown.

"All utility stores will cease operations by July 2, 2025," stated the minutes, adding that a final decision regarding the closure of operations on the inventory software "Oddo" will be made after July 1.

The USC has directed all zonal and regional managers to oversee the shutdown process. Stock from stores will be shifted to warehouses and returned to vendors under supervision. IT equipment, racks, and fixtures will also be reclaimed from all store locations, including USC headquarters and zonal offices.

Notices will be issued to vacate rented store premises by August 1, 2025. A dedicated closure operations department will also be constituted to oversee the entire process. Meanwhile, the General Manager (IT)/Aarsol has been tasked with developing a digital module to track USC's fixed assets.