The federal government has decided to permanently shut down all utility stores across Pakistan from July 10, with Prime Minister Shehbaz Sharif directing that employees be offered Voluntary Separation Scheme (VSS) packages as part of the closure plan.

According to official documents, the prime minister has instructed that all employees be provided exit packages on a voluntary basis, marking a formal end to the operations of the Utility Stores Corporation (USC).

The decision was finalised during a high-level meeting chaired by the USC managing director, where it was resolved that all functioning utility stores will begin halting operations nationwide starting tomorrow.

Existing stock will be shifted to central warehouses, and from there, it will be redistributed to retailers under official supervision.

It was further decided that IT equipment in offices and stores will be returned, and items of shelves and other assets will be auctioned off through a transparent process.

Notices will be served to vacate rented store properties by August 1, and asset valuation will be conducted to assess the remaining inventory.

This move follows a March 2025 government decision to shut down 1,700 loss-making utility stores and terminate the services of contractual and daily wage staff.

The plan was shared during a meeting of the Senate Standing Committee on Industries and Production, chaired by Senator Aon Abbas Buppi.

During the briefing, the USC MD had disclosed that the utility stores were on the second phase of the government’s privatisation list.

However, the privatisation process was delayed due to the absence of a two-year audit, which is now scheduled to be completed by August 2025. Initial evaluations of USC’s property and assets have already begun.

He added that while 1,700 stores are being closed, the 5,000 permanent employees will be moved to the government’s surplus pool after the privatisation process concludes.