Employees of the Utility Store from across Pakistan have planned to stage a protest near Parliament House in Islamabad in response to concerns over the government’s decision to potentially wind up USC operations nationwide.
The planned protest outside the Parliament House led to the blocking of the Red Zone by the Islamabad Capital Territory (ICT) administration to prevent protesters from coming near the parliament building. As many as 97 freight shipping containers near the Red Zone along with a large deployment of police force, according to Dawn report.
The containers were to be placed at Marriott Hotel, Express Chowk, Election Commission, Nadra Chowk, and near Serena Hotel as well as Bari Imam T-cross.
Utility Store employees protest amid reports of closure
On August 26, the protesting employees planned to surround the USC head office and hold a sit-in at D-Chowk. Over 12,000 employees from various provinces already began their journey to the capital to participate in the demonstration.
Malik Muhammad Azhar, Vice President of the All Pakistan Utility Stores Corporation (USC) Employees Union, had confirmed to The News that a significant number of employees are expected to gather in Islamabad for the protest.
“The caravans are on their way to Islamabad,” he had said. Azhar further explained that the employees would first assemble in front of the USC head office to stage a demonstration.
“After that, we will proceed to D-Chowk for a sit-in against the government’s decision to close USC stores nationwide,” he added, hinting that the protesters might also march towards the Parliament House as part of their demonstration.
Protesters claimed the Utility Stores Corporation is a profitable entity, contributing 25 billion rupees in taxes annually, yet 14,000 utility store employees across Pakistan are facing the loss of their livelihoods. In the financial year 2022-23, the Utility Stores Corporation (USC) reported an annual sale of over Rs137 billion with a net profit of over Rs760 million, according to estimates.
Sajjad Ali, who manages the utility store on Arbab Road, told The Nation that his outlet alone employs six staff members, along with additional daily wagers. “In Khyber Pakhtunkhwa alone, there are about 4,000 employees, and nationwide, the figure reaches 14,000. If these stores are closed, all these workers and their families will be left without a means of income,” he emphasized.
The USC management also requested Rs. 14 billion from the government to maintain operations. Employees believe that if the government pays these pending dues, the department can continue to function smoothly without further government assistance.
Anayatullah Dola, Senior General Manager at USC, stated that discussions with the government are ongoing to reverse the decision. “There are 4,800 stores across the country employing hundreds of workers who have been with the corporation for years. We are doing everything we can to resolve this issue,” he asserted.
Why Utility Store closure is being considered?
The Utility Stores Corporation is among 28 government entities under five ministries that officials have decided to abolish in an effort to streamline state operations and reduce administrative expenditures. The federal government is still in the process of reviewing this proposal and preparing a comprehensive plan to alleviate the burden on the national exchequer.
Utility Stores Corporation is a state-owned enterprise that provides lifelines to millions of low-income Pakistanis by offering subsidized groceries. This is why the reports of store closure have caused equal concern among the employees and the public.
No plans to shut down Utility Stores, says government
In response to protests by Utility employees, Minister for Industries and Production, Rana Tanveer Hussain, has dismissed the rumors, clarifying that the government has no plans to close the utility stores but intends to “restructure” the organization instead.
Rana Tanveer Hussain reiterated that the utility stores are not being shut down but are undergoing restructuring. He emphasized that the restructuring is intended to ensure that only deserving individuals receive relief and price discounts on essential food items and groceries.
“The impression that utility stores are being shut down is incorrect. The USC is being restructured to ensure that only deserving people receive relief and price discounts on essential food items and groceries,” the minister stated while speaking to the media after inaugurating the 9th Colour and Chem Expo at the Lahore International Expo Centre.
The government, Hussain added, is already providing subsidies to the needy through the Baitul Maal and Benazir Income Support Programme, stressing that subsidy misuse has been a persistent issue in the country.