The Ministry for Industries and Production (MoIP) secretary on Friday said that the government was considering shutting down all utility stores in the country.

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The decision is part of the rightsizing of federal government ministries, as well as institutions working under them, and was assigned for implementation to the Ministry of Industries and Production during a meeting chaired by Prime Minister Shehbaz Sharif on August 16.

The Utility Stores Corporation (USC) is also on the new list of federal government entities which are to be privatised in a phased manner, with the USC set for privatisation in the first phase. The USC is a state-owned enterprise that operates chain stores throughout the country, providing basic commodities to the general public at prices which are lower than the open market since the government subsidizes them.

During a meeting of the Senate Standing Committee on Industries and Production today, Senator Saifullah Niazi questioned whether the government would close utility stores in the country.

MoIP Secretary Saif Anjum replied that the government was considering shutting down the country’s utility stores, adding that work was in progress to transfer the employees of the utility stores to other institutions.

“Government wants to get out of non-essential businesses,” he said, adding that providing relief to utility stores eliminated the atmosphere for competition.

The secretary said the matter was under discussion with the federal cabinet and the government was yet to decide whether to completely shut down the corporation or to transfer the responsibility to provinces.

The Ministry of Industries and Production has been given two weeks as per the directive of the prime minister to work out alternate arrangements following the USC’s closure.

The USC was established in July 1971, by taking over 20 retail outlets from the Staff Welfare Organisation. Passing through various stages of expansion and reorganization, the USC is presently operating over 4,000 stores throughout the country.

While speaking to the media, standing committee chairman Aon Abbas Buppi said that it was a “very sad day for the country”.

“When I asked them whether they had any plans for the employees [of the utility stores], the government did not have a plan for that,” Buppi said, adding that approximately 60,000 employees would be rendered out of jobs following the decision.

“It is not clear what would happen to thousands of employees,” he said. “This incompetent government can give nothing but unemployment.”