Federal Government Utility Stores Privatization
Federal Government Utility Stores Privatization: The federal government has announced the closure of 1,700 loss-making utility stores across Pakistan as part of its privatization strategy. The decision comes as a major step in the government’s economic policies, under which 1,700 loss-making utility stores are being closed across the country. The aim is not only to reduce financial losses but also to make the institution more effective and efficient. The ongoing expenses of the Utility Stores Corporation were Rs 1.2 billion per month, but after the closure of loss-making stores, these expenses have been reduced to Rs 520 million. This decision has resulted in a monthly saving of Rs 220 million, while the overall loss has also come down by Rs 170 million to Rs 500 million.
Under this privatization plan, the government will keep only 1,500 stores operational and transfer the remaining staff to the surplus pool. At present, there are 5,000 permanent employees, while 6,000 employees work on contract and receive daily wages. The government has decided to shift permanent employees to the surplus pool and dismiss contract and daily wage workers without offering any compensation. These measures aim to reduce the government’s financial burden and improve the management of utility stores, making them more stable. The government also plans to take further steps to ensure the supply of affordable and quality goods to the public, aiming to provide long-term benefits to citizens.
Know How To Apply In CM Punjab Bewa Sahara Card Scheme
Why Are 1,700 Utility Stores Closing?
The privatization plan includes utility stores in the government’s sell-off list. However, the process faced delays because officials had not completed the biennial audit. They now expect to finish the audit by August 2025. Currently, Pakistan has over 3,200 utility stores, out of which 1,700 are incurring heavy losses. The government has decided to shut down these loss-making stores to ease its financial burden.
Impact on Employees
The decision to close 1,700 stores will affect thousands of employees. Here’s how the staff will be managed:
- Only 1,500 stores will require staff after privatization.
- Permanent employees will be shifted to a surplus pool.
- Contractual and daily wage workers will not receive any compensation and will be laid off after privatization.
- The total workforce of Utility Stores Corporation includes 5,000 permanent employees and around 6,000 contract/daily wage workers.
Quick Overview of Utility Stores’ Closure Plan
| Feature | Details |
| Total Utility Stores | 3,200+ |
| Stores to be Closed | 1,700 |
| Remaining Stores After Closure | 1,500 |
| Total Employees | 11,000+ (5,000 permanent, 6,000 contract/daily wage) |
| Privatization Completion Deadline | August 2025 |
| Financial Savings | Monthly losses reduced by Rs 22 crore |
BISP Kafaalat Payment Start Through 6 Banks
Financial Benefits of Store Closures
Officials revealed that the monthly operational cost of Utility Stores Corporation was around Rs 1.2 billion. However, after shutting down the loss-making stores, the government has reduced the cost to Rs 52 crore. Additionally:
- Monthly losses have dropped by Rs 22 crore.
- Total overall losses have decreased from Rs 67 crore to Rs 50 crore.
Government’s Strategy for Financial Stability
The federal government is implementing these changes to improve financial stability and manage utility stores more efficiently. By shutting down loss-making stores, the government aims to:
- Reduce financial burdens on state resources.
- Streamline privatization efforts.
- Enhance the efficiency of the remaining stores.
Conclusion
The decision to close 1,700 utility stores is part of the government’s long-term plan to minimize financial losses and privatize inefficient institutions. While this step will bring financial relief, it will also impact thousands of employees. The government will need to manage this transition carefully to balance economic benefits with social responsibility.
Punjab Approves CM Honhaar Scholarship for All Other Provinces
FAQs (Frequently Asked Questions)
Why is the government closing 1,700 utility stores?
The government is shutting down loss-making stores to reduce financial losses and advance privatization efforts.
How many utility stores are currently operating in Pakistan?
There are over 3,200 utility stores, but only 1,500 will remain operational after privatization.
What will happen to the employees of closed stores?
The government will transfer permanent employees to a surplus pool, while contract and daily wage employees will lose their jobs during the privatization process.
How much financial improvement is expected from this decision?
Monthly losses have already decreased by Rs 22 crore, and operational costs have reduced significantly.
The government expects to complete the audit by August 2025, after which it will proceed with the privatization process.
CM Maryam Nawaz Decision to Start Aghosh Program Registration