Pakistan Cabinet Approves Closure of Utility Stores Corporation

Islamabad – The Federal Cabinet of Pakistan has formally approved the dissolution of the Utility Stores Corporation (USC) on the recommendation of the Ministry of Commerce.

According to the official statement, the process will be carried out in phases, with assurances that the rights and benefits of employees will be fully protected during the transition.

The USC, which has been operating for decades as the country’s largest government-run retail chain providing essential commodities at subsidized rates, has faced persistent financial losses and management challenges. The Cabinet decision is aimed at ensuring more efficient use of state resources and exploring alternative mechanisms to provide essential goods to the public.

Authorities emphasized that employees will not be left without support, noting that they will either be absorbed into other government departments or compensated in accordance with legal provisions.

Economic observers, however, have expressed concern that the closure of USC may increase the burden on ordinary citizens, particularly low-income groups, as it was the only state-backed network offering essential food items at affordable prices.

The Cabinet has directed the Ministry of Finance and the Ministry of Commerce to design new relief schemes to mitigate the impact of rising inflation on vulnerable segments of society.