Islamabad: Federal Minister for Industries and Production, Rana Tanveer Hussain, has clarified that regular employees of the Utility Stores Corporation (USC) do not hold the status of government servants.
Speaking before the National Assembly Standing Committee on Industries and Production, he stressed that despite being permanent staff, USC employees are not classified as government officials.
During the committee meeting, which was chaired by Syed Hafeezuddin on Wednesday, the minister addressed concerns about the future of USC, asserting that the organization was undergoing restructuring to enhance its sustainability. He firmly denied rumors regarding the closure of USC, instead emphasizing that efforts were underway to improve operational efficiency and ensure job security for its workforce.
Highlighting the challenges faced by USC, the minister pointed out that the corporation had suffered billions of rupees in financial losses. He noted that the establishment of numerous small USC outlets in single-room setups across various cities had led to inefficiencies and was not a viable business model. Therefore, the restructuring plan aims to streamline operations and make USC more profitable.
The committee also reviewed the ministry’s development budget proposals for the next fiscal year. The chairman disclosed that while the ministry had been allocated Rs4.91 billion under the Public Sector Development Programme (PSDP) for the financial year 2024-25, only Rs22.09 million had been utilized for development projects. The Standing Committee decided to summon USC representatives along with members of the Pakistan Peoples Party (PPP) in the next session to discuss the ongoing concerns regarding the corporation’s future.
Mehreen Razzaq Bhutto, a committee member, reminded the minister of his previous assurances that USC stores would not be shut down. However, she expressed concern over discussions about potential layoffs. She argued that with proper management and oversight, USC could become a financially viable and profitable institution.
Referring to the widespread presence of USC outlets in local neighborhoods, Bhutto remarked that this expansion was in line with the vision of providing essential goods at affordable prices to the masses. She underscored the importance of USC’s role in catering to low-income groups.
Additionally, the committee reviewed newly proposed development projects, ultimately excluding six of them due to concerns about feasibility. It directed the Ministry of Industries and Production to seek vetting from the Planning Division before considering further action. This step was taken to ensure that all initiatives align with national priorities and adhere to strict financial and technical feasibility standards.
The Standing Committee reaffirmed its commitment to fostering industrial growth, enhancing the quality of technical training programs, and maintaining transparency in the allocation of public funds. While USC remains a vital institution, its sustainability will depend on strategic restructuring, improved financial oversight, and a commitment to serving the public effectively.
