USC Closure and Privatization: Govt Sets July 31 Deadline, VSS Plan Underway
ISLAMABAD – The federal government has reaffirmed its decision to close the operations of Utility Stores Corporation (USC) by July 31, 2025, as part of its broader restructuring and privatization agenda.
The update came during a high-level meeting chaired by Finance Minister Senator Muhammad Aurangzeb, who leads the Prime Minister’s Committee overseeing the process. The meeting focused on ensuring a smooth and transparent transition, with special emphasis on protecting employee interests and outlining a path for future privatization or asset sales.
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Voluntary Separation Scheme (VSS) in the Works
A major topic discussed was the design and implementation of a Voluntary Separation Scheme (VSS) for USC employees. The committee evaluated different aspects of the proposed package, including:
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Size and scope of the scheme
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Fiscal impact on the national exchequer
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Legal and operational implications
To streamline the process, a sub-committee led by the Secretary of the Establishment Division has been formed. It includes representatives from the Finance Division and Industries & Production Division, and will submit its findings by the end of the week.
Privatization or Asset Sale?
The committee also explored the feasibility of full privatization or selective asset sales, recommending close consultation with the Privatization Commission to determine the most practical and financially sound approach.
A final report consolidating all recommendations will be presented to the Prime Minister, ensuring all actions align with the government’s Terms of Reference.
Key Officials Present
The meeting was attended by:
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Special Assistant to the Prime Minister on Industries & Production, Haroon Akhtar Khan
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Secretaries of Establishment, Finance, and Industries & Production
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Managing Director of USC
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Senior officials from the Finance and Revenue Division
What This Means
The closure of USC signals a major policy shift in public-sector retail operations. While aimed at reducing fiscal pressure, the government says it is committed to protecting workers and ensuring that the transition is done fairly and lawfully.
Further updates on the VSS plan and privatization roadmap are expected soon.
Stay tuned for more on this developing story.
