EDITORIAL: The government’s decision to shutter the Utility Stores Corporation (USC) is a commendable move that demonstrates a willingness to discard inefficiencies that fail to deliver results.
For far too long, the USC — conceived as a lifeline for the underprivileged — has been a glaring example of public sector mismanagement. Instead of alleviating the hardships of the marginalised, the organisation became a symbol of waste, corruption, and operational inefficiency.
In its current state, it does little to justify the billions of rupees allocated annually to keep it afloat. For example, just the other day, the Economic Coordination Committee (ECC) approved Rs1.7 billion to settle the pending liabilities of USC under the Prime Minister’s Relief Package.
The closure of USC sends a strong message: public institutions must serve their intended purpose or face the axe. Critics may argue that shutting down USC leaves the poor without an alternative for subsidised goods.
However, it is worth questioning whether the corporation ever truly fulfilled this mandate. Reports of pilferage, uneven supply chains, and substandard goods plagued its operations.
Moreover, much of the financial burden fell on taxpayers who gained little in return. A poorly managed safety net is no safety net at all. And if the initiative to right-size the government provides the opportunity to do away with USC, then so be it.
A far better model to protect the underprivileged was provided by the ration card scheme, a legacy of the pre-partition era that was discarded in Pakistan in the 1970s-80s era but is still operational in India.
Operated by the private sector at the retail level, it provided five staples at licenced ration shops on the basis of the number of ration cardholders registered with them. It was efficient and served its purpose, yet for some reason the economic managers of the time believed Pakistan had outgrown such things. And now here we are, first letting the public sector take over the responsibility in the form of USC and then having to shut it down for all the usual reasons.
Of course, the decision to close USC should be accompanied by a clear roadmap to mitigate its impact. Thousands of employees are directly affected, and steps must be taken to ensure their transition to other roles or sectors.
Similarly, for communities dependent on USC outlets, alternative mechanisms must be expedited to prevent disruptions in access to essential goods. Policymakers must not lose sight of these human dimensions as they work to implement this decision.
One can only hope that the end of USC will serve as a precedent for evaluating other underperforming entities. What does not deliver results ought to be shut down, freeing resources for initiatives that can create a meaningful impact. In a country grappling with fiscal constraints and widespread poverty, there is no room for sacred cows in the public sector.
The government’s responsibility is to ensure that every rupee spent advances the welfare of the people. By closing the doors on USC, the state has taken a step in the right direction, signaling its commitment to accountability and better governance. Hopefully, this decision will mark the beginning of a broader reform agenda that leaves no room for complacency.
Copyright Business Recorder, 2025
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