The government has decided to dispose of the assets of Utility Stores Corporation (USC) within the current financial year, using Rs. 15 billion available with the Ministry of Industries and Production to clear sugar subsidy arrears. Established in 1971 to provide essential items at subsidised rates, USC expanded massively in the 2000s but has been incurring continuous losses since 2013, which had reached Rs. 23.8 billion by June 2025.
Placed on the active privatisation list in 2024, USC’s subsidies were discontinued and a rightsizing plan reduced outlets and staff, yet annual losses remained over Rs. 8 billion. Prime Minister Shehbaz Sharif approved the corporation’s closure on 31st July 2025, directing the Finance Minister to oversee liquidation, privatisation, and payment of severance packages. Despite resistance from staff unions, operations were halted and over 2,000 outlets closed in July.
The ECC has now been asked to approve a Rs. 30.2 billion supplementary grant for severance, compensation, unpaid salaries, and vendor liabilities. USC assets valued between Rs. 10.5 and Rs. 12.6 billion will be sold to partly cover costs, but legal and administrative hurdles remain.
