Islamabad, September 2, 2024 – Federal Minister for Industries and Production, Rana Tanveer Hussain, assured on Monday that there is no plan under consideration to close the Utility Stores Corporation, dispelling rumors and concerns surrounding the future of the state-run retail chain.
During a meeting with a delegation from the Utility Stores Corporation, which was also attended by the Managing Director of the Utility Stores Corporation and the Secretary of Industries and Production, the minister emphasized that the government is committed to maintaining the operations of the Utility Stores. He stated, “We are actively working on various options for the restructuring of the Utility Stores to ensure their continued function and efficiency.”
Rana Tanveer highlighted that a new mechanism for subsidies is being developed to enhance transparency within the corporation. “The aim is to streamline the subsidy process to prevent any misuse and ensure that the benefits reach the intended beneficiaries,” he added.
The minister also reassured that the government will not make any unilateral decisions regarding the closure of Utility Stores. “All decisions related to the future of Utility Stores will be made in close consultation with all relevant stakeholders, including the employees. We are committed to protecting the interests of all government employees,” he affirmed.
Last month, there was speculation about the potential shutdown of Utility Stores as part of a broader government strategy to reduce involvement in non-essential business activities. This consideration was revealed during a meeting of the Senate Standing Committee on Industries and Production, chaired by Aon Abbas. During the session, Secretary of the Ministry of Industries and Production, Saif Anjum, addressed concerns raised by Senator Saifullah Niazi, indicating that the government was looking to extricate itself from non-core business operations to promote market competition.
Anjum noted that the subsidies provided to Utility Stores have, in some cases, hindered market competition. He explained that the government was exploring options to reassign Utility Stores employees to other institutions to mitigate the impact of any potential closures.
In a follow-up discussion with the media, Aon Abbas expressed his concerns over the absence of a clear plan for the future of the Utility Stores and its approximately 60,000 employees. He highlighted the urgency of developing a viable strategy to address potential job losses if the closure decision moves forward, describing the situation as a bleak development for the nation.
Despite these earlier discussions, Rana Tanveer Hussain’s recent statements provide a much-needed assurance to employees and consumers alike, emphasizing the government’s intention to continue supporting the Utility Stores Corporation while making necessary improvements for transparency and efficiency.
