Karachi, May 4, 2025 – The Utility Stores Corporation (USC) is teetering on the brink of closure following the government’s sudden termination of thousands of contractual employees.
This drastic move has significantly impacted operations nationwide, raising serious concerns about the future of the state-run Utility Stores network.
According to internal sources, the USC has terminated nearly half of its workforce. Of the approximately 14,000 employees once operating across Pakistan, only about 7,000 now remain—primarily aging permanent staff who may struggle to manage the day-to-day operations of the remaining Utility Stores.
“This decision has led to the closure of numerous Utility Stores across the country,” an official confirmed on condition of anonymity. “The surviving workforce lacks the capacity to maintain normal operations.”
Established in July 1971, the Utility Stores Corporation initially took over 20 retail outlets from the Staff Welfare Organization. Over the decades, it expanded significantly, offering essential commodities at subsidized prices to millions of low-income Pakistanis. However, the government has now withdrawn the subsidy scheme through USC, effectively eroding its core mission. Major suppliers have since stopped providing goods, further crippling the corporation.
A letter dated May 3, 2025, issued by a zonal office of USC, stated: “The termination process for all contractual employees from BPS-1 to BPS-13 is underway. Many of these employees currently oversee stores and warehouses, which may result in financial recoveries during the handover process. Therefore, the April 2025 salaries of all such employees should be withheld until the finalization of the exit process to safeguard the corporation from potential losses.”
In response to these developments, the All Pakistan Workers Union – Utility Stores Corporation has announced a protest against the layoffs and the perceived dismantling of the organization. The union decried the government’s “inhumane” decision to shut down the Utility Stores and abruptly terminate daily-wage and contract employees.
A protest is scheduled for Monday, May 5, at the Karachi Press Club, where hundreds of affected workers from Utility Stores are expected to gather. The union’s General Secretary will lead the demonstration and unveil the next steps in their campaign to save USC.