Islamabad, July 16, 2025 – The federal government has officially introduced a Voluntary Separation Scheme (VSS) for the employees of Utility Stores Corporation (USC) ahead of the entity’s scheduled shutdown on July 31, 2025.
The decision marks a historic transformation in Pakistan’s retail subsidy mechanism, signaling the end of an era for the nation’s oldest state-run chain of essential goods.
Chaired by Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, a high-stakes meeting of the Prime Minister’s Committee on USC closure and privatization took place in Islamabad on Wednesday. The committee, formed by the premier to manage the Utility Stores wind-down, has been tasked with ensuring a transparent, efficient, and just process for all stakeholders—especially the thousands of USC workers facing imminent displacement.
The committee’s foremost priority is crafting a VSS that is not only financially viable but also humane, taking into account the long-standing service of Utility Stores employees. Detailed deliberations were held on the scope, structure, and legal dimensions of the scheme. The plan aims to offer fair financial packages to all eligible workers, providing them with an opportunity to voluntarily exit the organization before the shutdown.
Officials confirmed that the VSS will be funded through the federal budget and designed to minimize disruptions and grievances during the closure. The government emphasized that every effort will be made to treat USC employees with dignity during this transition.
Also present at the meeting were Special Assistant to the Prime Minister on Industries & Production Haroon Akhtar Khan, secretaries from key ministries, the Managing Director of USC, and senior officers from the Finance and Revenue Division.
The committee further proposed that the Privatization Commission be brought in to evaluate potential asset sales and the broader privatization of Utility Stores infrastructure. A sub-committee, led by the Secretary Establishment Division, has been formed to finalize the technical framework of the VSS, including cost analysis and rollout plans. Its findings will be compiled and submitted to the main committee by the end of the week.
As Pakistan prepares to say goodbye to the once-essential Utility Stores chain, the success and fairness of the VSS will play a critical role in shaping the legacy of this monumental public sector restructuring.