ISLAMABAD: Pakistan’s top economic decision-making body on Thursday approved a Rs30.216 billion ($108 million) funding package to wind down the Utility Stores Corporation (USC), a state-run retail chain that has long been a financial drain on the national exchequer.
The Economic Coordination Committee (ECC) of the Cabinet, chaired by Finance Minister Muhammad Aurangzeb, said the plan would allow for the orderly closure of USC while covering severance payments, employee compensation and outstanding dues.
“The decision represents a major step in responsibly addressing the longstanding financial burden of USC on the national exchequer, while also safeguarding the interests of employees affected by the closure,” the finance division said in a statement.
“By approving severance, compensation and payment of outstanding dues, the Government is ensuring that workers receive their entitlements, thereby cushioning the social and economic impact of USC’s winding up.”
The ECC said the Ministry of Industries and Production would rationalize closure costs and that USC assets, including real estate, would be sold within the current financial year to partially offset liabilities.
