The Economic Coordination Committee (ECC) of the cabinet on Thursday approved a technical supplementary grant of Rs30.216 billion to ensure the “smooth closure” of the Utility Stores Corporation (USC) of Pakistan.
“The decision represents a major step in responsibly addressing the longstanding financial burden of USC on the national exchequer, while also safeguarding the interests of employees affected by the closure,” the Finance Division said in a statement.
The division was of the view that by approving severance, compensation and payment of outstanding dues, the government is ensuring that workers receive their entitlements.
The government-owned USC shut its operations at all outlets on July 31, 2025.
The ECC, in its meeting on Thursday, decided that the Ministry of Industries & Production shall further rationalise the financial requirements for the closure of USC.
“It was further decided that the assets of USC, including properties, shall be disposed of within the current financial year so that the costs of closure are partially met through sale proceeds,” read the statement.
The committee also underlined the importance of carrying out the closure in an orderly and transparent manner, including the disposal of USC properties to partially meet liabilities.
“The approved financial package underscores the government’s commitment to protecting employees’ welfare while ensuring fiscal discipline in the winding down of USC’s operations,” it said.
The meeting chaired by Finance Minister Muhammad Aurangzeb, was attended by Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Commerce Jam Kamal Khan, Federal Minister for Power Sardar Awais Ahmad Khan Leghari (virtually), Special Assistant to Prime Minister for Industries and Production Haroon Akhtar Khan, federal secretaries and senior officials from concerned ministries, departments and regulatory institutions.
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