The Lahore High Court has issued notices to the federal government, the Secretary of the Cabinet Division, the Secretary of the Ministry of Law, and the Managing Director of Utility Stores in response to a petition challenging the decision to close utility stores nationwide, as heard by Justice Muhammad Raza Qureshi.

The petitioner, who has been employed by the utility stores for 10 years, argued that the stores are profitable, contributing 25 billion rupees in taxes annually.

Read more: Government Plans to Close Utility Stores Nationwide

He claimed that the utility stores have a net profit of 2 billion rupees while covering billions in expenses and salaries.

The petitioner asserted that the closures are being driven by IMF directives and would lead to the unemployment of 11,000 workers.

He also noted that under the Companies Act 2017, sections 293 to 426, a company can only be closed by court order or board of directors’ decision, and the board has declared the stores profitable. The petitioner requested the court to cancel the Cabinet Division’s notification issued on August 7, 2024, and the meeting minutes from August 9.