ISLAMABAD – The Senate Standing Committee on Industries and Production reviewed the payment process for employees of the Utility Stores Corporation of Pakistan (USC) after the government’s rightsizing decision.
The meeting, chaired by Senator Aon Abbas, was held in Islamabad. Members discussed the financial and administrative challenges of Utility Stores, which have faced mounting losses in recent years. Officials from the Ministry of Industries and Production informed the committee that the corporation, established in 1971, is struggling to pay salaries on time.
Despite the closure of operations, the corporation still faces liabilities exceeding Rs57 billion. Out of this, Rs30.8 billion is owed to vendors. However, between 2021 and 2023, Utility Stores had posted profits due to government subsidies on essential commodities. These measures, including the Ehsaas Ration Program, had provided relief to millions of low-income households.
The secretary also briefed members on the proposed Severance Package for USC employees affected by the closure. The package, worth Rs25.255 billion, will cover different employee categories based on service length. Around Rs15 billion will be re-appropriated and disbursed in three phases until June 2026. The remaining funds will be generated through the sale of USC properties across the country.
Authorities assured the committee that disbursements would be made on time to minimize hardship for affected workers.
The committee also discussed matters related to the Small and Medium Enterprises Development Authority (SMEDA). Members raised concerns over the sudden removal of four board members and directed the submission of related documents, including Cabinet proceedings.
The session was attended by several senators, who emphasized the need for transparency in both USC and SMEDA affairs. The chairman stressed that the timely settlement of dues for Utility Stores employees remains a top priority.
In other news read more about: Senate Body Reviews Virtual Assets Bill 2025, Proposes Amendments
