Pakistan, Aug. 1 -- The Utility Stores Corporation (USC) officially stopped functioning on Thursday, adhering to the July 31 deadline set earlier this month for shutting down the state-owned enterprise (SOE).
Founded in 1971, USC was an SOE responsible for providing key goods at reduced prices, mainly aimed at families with limited income. It had more than 4,000 stores across the country.
As per a notice from the Ministry of Industries and Production at USC, the decision was made in line with instructions given by Prime Minister Shehbaz Sharif on June 28 and a board of directors meeting held earlier this month.
"All transactions involving sales and purchases at utility stores have been halted as of July 31, with the exception of moving inventory from stores to warehouses, returning goods to suppliers, and conducting inventory handovers at the stores," the notice states, emphasizing full adherence to the directive.
Furthermore, the sale of the business-management suite Odoo has been permanently halted starting today, according to a second USC notice.
All retail systems linked to Odoo will be disabled across all stores starting July 31," the announcement stated. "No store manager or appointed representative is permitted to carry out any sales via the Odoo system after this date. Furthermore, no purchasing activities will be initiated through Odoo either.
As per the notice, the Odoo system is intended solely for inventory reconciliation and record keeping, and any effort to perform sales or purchase activities after today will be considered "a significant breach of official policy".
It stated that "any employee discovered engaging in or enabling sales or purchases via Odoo after July 31 will be personally accountable, and severe disciplinary measures will be enforced according to USC regulations."
As per the finance ministry's Federal SOE Performance Overview for the first half of FY25, USC recorded a loss of Rs4.1 billion during the six-month period, with total losses increasing to Rs15.5bn - indicating ongoing structural and operational issues.
In January, the federal cabinet established a high-level committee to create an extensive strategy for the swift termination of USC activities across the country. The committee was assigned the responsibility of devising a plan for the immediate shutdown of the USC, along with measures for relocating permanent USC staff into a surplus pool or integrating them into available positions within other federal government agencies.
In April, the Standing Committee on Privatisation of the National Assembly was notified that, as part of USC's restructuring initiative, 1,203 Utility Stores were shut down and 2,237 workers were terminated.
In the meantime, Sindh Senior Minister Sharjeel Inam Memon has raised significant worries regarding the abrupt shutdown of the Utility Stores Corporation of Pakistan, noting that the workers of Utility Stores have shown integrity and commitment over many years, and it is unfortunate to overlook their contributions.
In a statement, Sindh Senior Minister and Provincial Minister for Information, Transport, and Mass Transit Sharjeel Inam Memon mentioned that the Utility Stores Corporation has been essential in supplying fundamental food products to low-income individuals at reasonable rates over the last 55 years. In 1971, Shaheed Zulfikar Bhutto set up utility stores to offer financial support to those in need.
He mentioned that the Utility Stores Corporation was providing services to an average of 15 to 20 million individuals each month via around 3,800 utility stores throughout the nation, especially in regions where the private sector does not operate.
Sharjeel Inam Memon stated that shutting down utility stores and terminating approximately 12,000 workers via a golden handshake is an assault on the lives of many families and contradicts the public's best interests. He mentioned that employees of utility stores have worked with integrity and commitment for years, and it is unfortunate to overlook their contributions.
He stated that rather than making the diligent workers in utility stores unemployed, they should be appropriately placed in other federal or provincial organizations. Instead of shutting down the utility stores entirely, they should undergo restructuring while maintaining their function by adapting to current needs.
He mentioned that utility stores are more than just a commercial operation; they serve as a national service offering crucial assistance and ease to millions of individuals throughout the nation.