The federal government has decided to shut down utility stores across Pakistan, citing severe financial constraints, as confirmed by Saif Anjum, Secretary of the Ministry of Industry and Production. The decision, which marks a significant shift in the government’s approach to managing public sector enterprises, was discussed during a briefing to the Senate Standing Committee.
During the committee session, Saif Anjum presented detailed proposals prepared by the Rightsizing Committee, which recommended the closure of utility stores and other state-run entities as part of broader efforts to reduce government expenses. The proposals were put forward as a necessary measure to address the ongoing financial challenges faced by the federal government.
According to sources, the government has been struggling to secure the funds needed to keep these utility stores operational, leading to the difficult decision to phase them out. The Secretary informed the Senate panel that the closure plan is pending approval from the cabinet secretary, after which it will be presented to the full cabinet for final endorsement.
Once the cabinet approves the closure, a timeline will be established to systematically shut down utility stores across the country. The Rightsizing Committee’s recommendations also include the closure of additional state-run entities, which will undergo a similar approval process before implementation.
This move comes as part of the government’s broader strategy to address financial limitations and streamline its operations. In line with these efforts, the federal government had earlier approved a five-year privatization program, aimed at offloading several state-owned enterprises. The privatization plan, which was greenlit by the federal cabinet, is set to be executed in three phases.
In the first phase, the government plans to privatize major entities such as Pakistan International Airlines (PIA), the House Building Finance Corporation (HBFC), and several electric supply companies, including those in Faisalabad, Islamabad, and Gujranwala. The second phase will focus on other key organizations, including the Utility Stores Corporation, State Life Insurance Corporation, and Pakistan Re-Insurance Company, among others.
The closure of utility stores is a significant component of the government’s broader austerity measures, aimed at reducing the fiscal burden on the state and ensuring more efficient use of public resources. The decision is expected to have wide-reaching implications, affecting both consumers who rely on these stores for subsidized goods and the employees who may face job losses as a result.
