Karachi, February 27, 2025 – The ongoing wave of layoffs at the Utility Stores Corporation (USC) is set to intensify as new administrative directives have been issued to dismiss regular employees up to grade 12.
The latest orders mark another phase in the restructuring of USC, raising concerns among employees about job security.
According to an official order issued by USC Headquarters, Regional Managers have now been granted authority to dismiss or terminate officials in grades up to BS-12. The office order, titled “Appointing & Punishing Authority,” explicitly states: “It has been reiterated that in accordance with Chapter-III, Rule 5, Schedule-II of USC service rules, the Regional Manager has the authority to terminate/dismiss USC employees up to BS-12. Similarly, he can also exercise his power to relieve daily wage workers.”
This development comes after USC recently terminated the services of a large number of daily wage workers. With these new instructions, employees working under regular or contractual terms now fear that more layoffs could be imminent.
USC, a semi-government organization, has long served as a platform for the government to provide subsidized goods to the masses. During Ramadan, the significance of USC increases as it plays a key role in ensuring affordability for financially challenged communities. However, this year, the government has decided not to pass on Ramadan-related subsidies through USC, making its vast network of outlets redundant and placing its workforce in jeopardy.
Recently Federal Minister for Industries and Production, Rana Tanveer Hussain, distanced USC employees from government service status. Speaking before the National Assembly Standing Committee on Industries and Production, he clarified that despite having permanent staff, USC employees are not considered government servants.
During the committee session, chaired by Syed Hafeezuddin, the minister addressed concerns regarding USC’s future. He asserted that while the organization is undergoing restructuring, the aim is to enhance sustainability rather than shut it down. He reassured that efforts were being made to improve operational efficiency while ensuring job security for employees.
The minister highlighted the financial challenges facing USC, noting that the corporation has incurred billions of rupees in losses. He pointed out that the proliferation of numerous small USC outlets in single-room setups across various cities had led to inefficiencies. Consequently, the restructuring plan aims to streamline operations and make USC a more viable and profitable entity.
With the USC layoffs entering an advanced stage, employees remain uncertain about their future. The government’s decision to cut down on USC’s role in subsidized goods distribution has placed additional pressure on the corporation, leaving thousands of workers in a precarious position.