The federal government has decided to shut down 1,700 loss-making Utility Stores as part of its privatization plan, officials informed the Senate Standing Committee on Industries and Production during a meeting chaired by Senator Aun Abbas. Out of over 3,200 utility stores nationwide, only 1,500 will remain operational after privatization, while the rest will be closed due to financial losses. The privatization process, previously delayed due to a pending two-year audit, is now expected to be completed by August 2025. The decision will significantly impact employees, as 5,000 regular workers will be placed in a surplus pool, while nearly 6,000 contract and daily wage employees will be laid off without compensation. Financially, shutting down loss-making stores has already reduced the corporation’s monthly expenses from Rs 1.02 billion to Rs 520 million, decreasing monthly losses by Rs 220 million and bringing the total deficit down to Rs 500 million.
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