Islamabad, August 28, 2025 – In a significant fiscal move, the Economic Coordination Committee (ECC) of the Cabinet approved a technical supplementary grant of Rs30.216 billion to facilitate the orderly closure of the Utility Stores Corporation (USC) of Pakistan.
The ECC meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, emphasized the need for a structured exit strategy for USC, which has long been a financial strain on the national exchequer. The decision ensures that the winding down of the Utility Stores network is conducted responsibly, with a focus on employee welfare and fiscal discipline.
According to the Finance Ministry’s press release, the approved grant will cover severance packages, compensation, and settlement of outstanding dues, safeguarding the interests of thousands of workers who have served in the now-defunct Utility Stores system. Officials highlighted that the Ministry of Industries and Production would continue to rationalize financial requirements for the closure process and oversee the disposal of USC assets, including properties, within the current fiscal year.
The proceeds from these asset sales are expected to partially offset the overall cost of closure, reducing the fiscal burden on the government. The ECC underscored the importance of transparency and efficiency in the process to avoid mismanagement of public funds and ensure a fair settlement for all stakeholders.
The meeting was attended by key federal ministers, senior officials, and regulatory authorities, signaling the government’s commitment to responsibly phasing out the Utility Stores Corporation while protecting employee rights and maintaining budgetary control.