ISLAMABAD: The federal cabinet on Friday unanimously approved the dissolution of the state-run Utility Stores Corporation (USC), weeks after its nationwide operations were suspended.
While chairing a meeting of the cabinet, Prime Minister Shehbaz Sharif directed that the winding down of the loss-making retail chain be conducted with full transparency and with safeguards in place to protect employee rights.
The USC, established to provide subsidised goods to low-income households, ceased operations on July 31 amid growing concerns over inefficiency, mismanagement, and overlapping mandates with other government programmes.
Govt moving ahead with VSS for USCP employees
The decision marks a significant shift in the government’s strategy to streamline state-owned enterprises and reduce fiscal strain, though no timeline for the dissolution was disclosed.
Turning to economic matters, the cabinet granted in-principle approval to amend the Special Economic Zones Act of 2012, aiming to spur industrial development and attract new investment.
The proposed changes are intended to create a more business-and investor-friendly environment within the zones, accelerating industrial growth.
The prime minister stressed that a conducive environment for businesses and investors is critical to national industrial progress.
He said the economy was showing signs of stability and sustainable growth, with industrial expansion expected to boost exports and generate employment.
The cabinet also reviewed proposals on stabilizing urea fertilizer prices, following a recommendation from the Ministry of National Food Security and Research.
Sharif underlined the importance of lowering production costs for farmers to enhance agricultural output.
To address the issue, Sharif formed a high-level committee comprising Climate Change Minister Dr Musadik Malik, Petroleum Minister Ali Pervaiz Malik, National Food Security Minister Rana Tanveer, Adviser Muhammad Ali, and the special assistant to the prime minister on industries Haroon Akhtar.
Separately, the cabinet approved the presentation of the National Economic Council’s annual report for the 2023-24 fiscal year to Parliament, and endorsed decisions made by the Economic Coordination Committee (ECC) on August 19 and the Cabinet Committee on Legislative Cases (CCLC) on August 18.
Copyright Business Recorder, 2025