ISLAMABAD: The federal government of Pakistan has reportedly set July 31 as the deadline to close down the Utility Stores Corporation (USC) on the directive of Prime Minister Shehbaz Sharif.
As per details, all USC employees will be offered a Voluntary Separation Scheme (VSS) as part of the closure strategy. Reports alleged that loss-making stores will be permanently closed, while the rest will be handed over to the private sector.
The process will be overseen by the Privatisation Commission, which has been tasked with managing the transition and will brief the Prime Minister on the procedural developments.
The Ministry of Industries has also been involved in the plan to wind up the state-run retail chain, which has incurred persistent financial losses over the years.
The decision follows a final high-level meeting chaired by the Prime Minister on June 28.
Earlier, in May 2025, the International Monetary Fund (IMF) asked Pakistan to terminate additional Utility Stores Corporation employees by June 30 as part of its right-sizing policy.
According to sources, 2,237 daily-wage workers have already been sacked in the first phase, and in the second phase, approximately 2,800 contract employees from grades 1 to 13 will be dismissed.
Employees in grade 14 and above will be transferred to a surplus pool by the same deadline, sources revealed.
