Pakistan govt closes all state-owned utility stores

Pakistan government announced on Thursday closure of all utility stores across the country, bringing an end to decades-old subsidised retail system.

As per a notification seen by Business Recorder, the government-owned Utility Stores Corporation (USC) shut its operations at all outlets from July 31 (today).

“All the sales and purchases at utility stores have been closed with effect from July 31, 2025 except shifting of stock from stores to warehouses and returned to vendors and handing-taking of stores inventories,” the notification read.

Last week, USC employees staged a protest in Islamabad against the government’s plan to shut down utility stores. Protesters chanted slogans against the government and vowed to continue their demonstration until their demands were met.

The demonstrators had warned that closing down utility stores would worsen inflation and push thousands of workers into unemployment. “Shutting down utility stores would be like handing over 260 million citizens to the mafias of inflation,” one protester had said.

Reports of USC closure emerged in August 2024 when Senator Aon Abbas, then Chairman Senate Standing Committee on Industries and Production, said the government was considering shutting down all utility stores in the country.

“Around 7,000 of employees will be rendered out of jobs and the secretary couldn’t answer if the government would give them golden handshake or provide them jobs in some other departments,” Abbas said then.

Later in September 2024, Minister for Industries and Production Rana Tanveer Hussain announced that the government was not considering proposals to close the USC. Hussain had said then that various options for the restructuring of the USC were being explored to enhance transparency.

According to the information available on its website, the USC was established in July 1971, by taking over 20 retail outlets from the Staff Welfare Organisation. The USC was operating 4,000 stores across the country.

It was serving “poorer segments of the society, at comparatively cheaper rates than the market and to offer them a pleasant environment of mutual confidence while making their purchases”.

‘Modernise, don’t shut down’

Meanwhile, Sharjeel Inam Memon, a senior minister of Pakistan People’s Party (PPP) that is an ally of the ruling Pakistan Muslim League - Nawaz (PML-N), criticised the federal government over its decision to shut the utility stories, saying the government should rather modernise them.

“This institution [USC] has been providing low-income people with affordable essential items for the past 55 years,” said Memon.

Nearly 20 million people had been benefiting monthly from nearly 4,000 stores across the country, he added.

“The closure of the institution and the termination of 12,000 employees is an attack on the livelihoods of thousands of families.

“We demand that instead of laying off employees, they be adjusted into other departments,” the minister said.

“Rather than shutting down the utility stores, they should be modernised and made functional.”