Govt shuts down utility stores across Pakistan

As part of closure strategy, all USC employees will be offered a Voluntary Separation Scheme (VSS)
A long queue of people is seen outside a utility store in an undated picture. — APP
A long queue of people is seen outside a utility store in an undated picture. — APP

The Prime Minister Shehbaz Sharif-led government on Thursday shut down all utility stores nationwide following approval from the prime minister and the Utility Stores Corporation (USC).

“All the sales and purchases at utility stores have been closed with effect from July 31, except shifting of stock from stores to warehouses and returned to vendors and handing-taking of stores’ inventories,” the notification reads, instructing strict compliance with the order.

Notably, the government set July 31, 2025, as the official deadline to shut down the stores. The decision was taken in a high-level meeting held on 28th June at the directive of the PM.

As part of the closure strategy, all USC employees will be offered a Voluntary Separation Scheme (VSS).

According to the notification, the Odoo system will only be used for inventory reconciliation and record maintenance, and any attempt to carry out sales or purchase transactions after today will be treated as “a serious violation of official policy.”

“Any employee found conducting or facilitating sales or purchases through Odoo after July 31 shall be held personally responsible, and strict disciplinary action will be initiated under USC rules,” the notification added.

Previously in May, the International Monetary Fund (IMF) urged Pakistan to stop additional Utility Stores Corporation employees by June 30 as part of its right-sizing policy.

According to sources, 2,237 daily-wage workers were sacked in the first phase. Employees in grade 14 and above will be transferred to a surplus pool by the same deadline.