The government has approved a supplementary grant of Rs30.2 billion to ensure the smooth closure of the Utility Stores Corporation (USC), marking the end of its operations nationwide. The Economic Coordination Committee (ECC) announced that the financial package aims to reduce the burden on the national exchequer while also protecting the rights and welfare of employees affected by the shutdown.
In its meeting on Thursday, the ECC stressed that the approved amount would cover severance, compensation, and outstanding dues, ensuring that workers receive their rightful entitlements during the winding-down process. The decision reflects the government’s attempt to balance fiscal discipline with employee protection, highlighting both financial responsibility and social consideration in managing the closure.
Furthermore, the ECC directed the Ministry of Industries and Production to rationalise financial requirements to make the process more efficient. The committee also announced that USC assets, including properties, will be disposed of within the current financial year to meet part of the costs through sale proceeds. This move is aimed at reducing the fiscal pressure of the closure.
The meeting further underlined the importance of carrying out the process transparently and in an orderly manner. By selling properties and assets, the government expects to cover liabilities partially, ensuring that the closure is not only fair to employees but also financially responsible. Officials emphasised that the disposal must be handled carefully to maintain credibility and trust.
Chaired by Finance Minister Muhammad Aurangzeb, the meeting was attended by several key federal ministers and senior officials, including Rana Tanveer Hussain, Jam Kamal Khan, Sardar Awais Ahmad Khan Leghari (virtually), and Haroon Akhtar Khan. Their presence highlighted the importance of collective decision-making in managing the economic and social aspects of USC’s closure.
The Finance Division reiterated that this grant reflects the government’s commitment to reducing long-standing financial burdens while ensuring workers are not left unsupported. With USC’s nationwide operations having officially ceased on July 31, 2025, this step marks a significant chapter in restructuring state-owned enterprises to maintain fiscal stability.