In a bid to reduce expenses, the federal government is considering to shut down all utility stores across the country, Secretary of Industry and Production confirmed on Friday.
During the Senate Standing Committee meeting, Senator Saifullah Niazi questioned whether the government is planning to close utility stores in the country. Secretary Saif Anjum confirmed the development and said work was underway to transfer the employees of the utility stores to other departments. “The government wants to get out from unnecessary businesses,” the official said, claiming that providing subsidy to the utility stores is detrimental to competition in market.
According to utility stores management, the government has provided them with a two-week deadline to wrap up issues with companies while the Rs50 billion subsidy, which previously offered significant relief to around 26 million deserving households, has been halted. The utility stores management said over 11,000 employees, which including 6,000 permanent staff, are worried over the potential closure.
Speaking to the media, Atif Shah – General Secretary of All Pakistan Workers Alliance – said that the Utility Stores Corporation (USC) wasn’t a burden on national exchequer.
“The government collects Rs120 billion in taxes annually from companies in form of groceries sale,” he said, noting that Rs25 billion was being paid by USC which according to him makes 18% of the total amount.
Furthermore, Shah said they don’t take funds from the government and salaries of all employees are “self-generated”. He claimed that the government owes Rs20 billion to the corporation. Meanwhile, the USC management has decided to seek help from parliament with sources claiming that they would reach out to National Assembly and Senate’s Standing Committees on Industries and Production.
The standing committees would be apprised of the impacts of utility stores closure, sources said, adding that they would be asked to take up the issue in parliament. The move would severely impact millions of low-income families who have long relied on discounted goods, the sources added.
The government’s decision also prompted protests as utility stories employees have staged a protest outside their regional office at Scheme Mor in Lahore. The protesters, carrying placards and chanting slogans, demanded the government revert its decision.