
In what seems to be a major shift in the government's handling of state-owned enterprises, the government has announced to cease the operations of the Utility Stores Corporation (USC), a state-managed retail chain in Pakistan.
While the decision was announced by the federal cabinet on Wednesday, the government has also established a “Cabinet Committee on the Closure of Operations of Utility Stores Corporation”, to manage the process.
The committee for USC's operational closure is headed by Federal Minister for Industry and Production Rana Tanveer Hussain, as reported by The News.
The seven-member committee consists of higher-ups such as Minister of Finance and Revenue Muhammad Aurangzeb, State Minister for IT and Telecom Shaza Fatima Khawaja, Federal Secretary of Finance Imdad Ullah Bosal, secretary of the privatization ministry, secretary of Benazir Income Support Programme and secretary of production ministry.
The committee's Terms of Reference (ToRs) include “to determine the modalities for the immediate closure of the operations of the Utility Stores Corporation,” read a notification issued by the Cabinet Division on Tuesday.
“The committee will support arrangements for the placement of permanent human resources of the Utility Stores Corporation in the surplus pool or absorption against existing vacancies in other federal government organizations,” read the statement.
The terms of suspending USC's operations make it obligatory for the committee to submit a comprehensive report to the cabinet, detailing the progress of the closure, within seven days.
The Cabinet Division's notification also obliges the committee to ensure arrangements for the protection and maintenance of assets owned by the USC.