The federal government has formally ceased the operations of the Utility Stores Corporation (USC) of Pakistan (Pvt) Limited, ending decades of subsidised grocery services to low-income households across the country.
According to an internal notification issued by the General Manager of Stores Operations & Services (SO&S), all sales and purchase activities at USC outlets have been terminated effective July 31, 2025. The suspension also applies to procurement and inventory handling, except for limited functions such as stock shifting to warehouses, vendor returns, and internal inventory reconciliation.
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The directive follows the Prime Minister’s instructions dated June 28 and the 190th Board of Directors meeting held on July 2, signaling a complete closure of government-run retail operations. Internal monitoring teams have been deployed to supervise the shutdown and secure inventories.
The closure has sparked concerns for thousands of USC employees nationwide. While the government has yet to release an official plan for severance, relocation, or reemployment, sources indicate that a compensation and absorption policy is under consideration as part of the state-owned enterprise (SOE) restructuring plan.
A senior official from the Ministry of Industries and Production said:
“We are reviewing options to redeploy a portion of the workforce to other federal initiatives and finalize an exit package for those whose positions will be eliminated.”
USC, once a lifeline for affordable groceries, had faced mounting financial losses, mismanagement allegations, and operational inefficiencies in recent years. Analysts view the closure as part of a broader subsidy reform and SOE rationalization drive, aimed at reducing fiscal burdens and curbing leakages in government support programs.
