All Utility Stores to permanently shut down in Pakistan from July 10

The decision was finalized during top-level meeting chaired by USC managing director.

By DTD- On Jul 2, 2025

ISLAMABAD – Operations of all utility stores to end this month as federal government decides to close loss making utility stores nationwide.

The federal government formally decided to shut down Utility Stores Corporation (USC) and close all its outlets nationwide from July 10. Prime Minister Shehbaz Sharif directed authorities to offer Voluntary Separation Scheme (VSS) to all employees as part of the corporation’s closure plan.

PM Sharif approved plan to wrap up operations at utility stores, instructing that transition be handled with minimal disruption and that all employees be given an option to exit through a voluntary compensation package.

The decision was finalized during top-level meeting chaired by USC managing director. It was agreed that stores will begin winding down their operations from July 3, with existing inventory to be transferred to central warehouses. The stock will later be distributed to private retailers under the supervision of government officials.

USC’s IT infrastructure will be returned to its parent departments, and store fixtures, shelving, and surplus goods will be auctioned through a transparent process. For stores operating in rented premises, notices to vacate will be issued by August 1, while a full valuation of assets and inventory is also being initiated.

The move comes after government’s earlier decision in March 2025 to close 1,700 loss-making utility stores and terminate the services of daily wage and contract employees. That plan was disclosed during a meeting of the Senate Standing Committee on Industries and Production, chaired by Senator Aon Abbas Buppi.

Officials informed lawmakers that corporation had been placed in second phase of government’s privatisation agenda. The process had been delayed due to the absence of financial audits covering the past two years.

That audit is now scheduled for completion by August 2025, while initial evaluations of USC’s property and other assets are already underway. Once privatisation is completed, the government plans to transfer the USC’s 5,000 permanent employees to the federal surplus pool, effectively ending USC’s operations as a public-sector entity.