The payment of compensation packages to former employees of the Utility Stores Corporation has officially begun, with authorities confirming that disbursements started on Monday.
Read More: Cabinet approves dissolution of Utility Stores Corporation
According to officials, details of the compensation have been uploaded to the Accountant General Pakistan Revenues (AGPR) portal to streamline payments for 4,459 employees across the country. The first instalment, amounting to 40 percent of the total compensation package, is being credited directly to employees’ bank accounts.
The payments follow the dissolution of the Utility Stores Corporation of Pakistan (USCP) in 2025, which marked the end of one of the country’s largest state-run retail networks. The corporation had operated 5,939 stores nationwide, providing essential commodities at subsidised rates to the general public.
Established in 1971, the Utility Stores Corporation was created to offer price relief on food and other household items, particularly targeting low-income segments of society. It began operations with just 20 stores acquired from the Staff Welfare Organization and gradually expanded into a nationwide chain.
Over the decades, the corporation played a key role in supplying basic goods, including flour, sugar, pulses, and other essential items, at prices lower than the open market. Its mandate also included ensuring the availability of clean, graded, and hygienic products free from adulteration.
The organisation was governed by a board of directors and headed by a managing director. It remained subject to public accountability, with individuals and organisations able to approach courts over concerns related to product quality and service standards.
Read More: Govt announces closure of utility stores across country
Officials say the phased compensation process is designed to ensure transparency and timely payments to affected employees, many of whom served the organisation for years before its closure.
Further instalments are expected to be released in accordance with the approved compensation plan.