The federal government has decided to permanently close the Utility Stores Corporation (USC), putting around 11,000 jobs at risk. Officials assured lawmakers on Monday that the Rs27 billion owed to employees and suppliers will be paid in two phases, even as the decision to shut down the struggling state-owned enterprise moves forward.
The announcement came during a meeting of the National Assembly’s Standing Committee on Privatisation, chaired by Dr Muhammad Farooq Sattar, where lawmakers demanded a full breakdown of pending dues and clarity on how workers’ rights will be safeguarded.
From Subsidies to Shutdown
Once a key player in providing affordable goods through subsidies, USC has been operating at a loss since the withdrawal of those subsidies, officials told the committee. Despite objections from members who described the corporation’s closure as “deeply concerning,” the Privatisation Commission confirmed that the process is already finalised.
Privatisation Momentum Extends to PIA
The meeting also touched on other state-owned entities, with the Privatisation Commission revealing that due diligence is underway for the sale of Pakistan International Airlines (PIA). Several business groups have reportedly shown interest, and the transaction is expected to be completed by late 2025. The committee requested a full list of privatisation board members at its next session to ensure transparency in the process.
Load-Shedding Sparks Criticism
Lawmakers also raised concerns over power outages nationwide. Officials denied any national electricity shortage but admitted that “load management” is being imposed on feeders plagued by electricity theft and heavy losses. The committee suggested cutting power only to consumers involved in theft rather than penalising entire areas, a policy shift aimed at easing public frustration.
Additionally, members recommended that the Minister for Power hold regional consultations with MPs to address constituency-level complaints more effectively.
Pakistan Engineering Company’s Future in Question
The session also reviewed the troubled Pakistan Engineering Company (PECO). Lawmakers pushed for efforts to revive the company before resorting to privatisation. They ordered an inquiry into alleged irregularities during the tenure of former Managing Director Mairaj Anees Ariff and requested a comprehensive report.
