446 utility stores 'closed' after subsidy withdrawal

Following the discontinuation of subsidy by the federal government of Pakistan, as many as 446 utility stores have been shut down nationwide, ARY News reported on Monday, citing sources.

According to sources, the closures have targeted loss-making utility stores, particularly in rural areas, and no employees will lose their jobs as a result.

The sources said the plan to close 500 more utility stores is also on the cards.

They further said that only those stores with low revenue and high losses were closed.

Most of the affected outlets are in rural areas, where utility stores were heavily reliant on government subsidies.

The federal government had already ended subsidies on essential items such as sugar, flour, and cooking oil in August this year.

Previously, the government provided subsidies on five basic commodities, which were seen as lifelines for low-income households.

However, financial challenges have prompted this restructuring, focusing on curbing losses rather than workforce downsizing.

Read more: Utility stores closure: Here’s what federal minister said?

Earlier, Pakistan government ‘okayed’ 5-year privatisation program. The decision was taken by the federal cabinet in a meeting held here in Islamabad, the sources said and added that the five-year privatisation program will be completed in three phases.

In the first phase, privatisation of Pakistan International Airlines (PIA), House Building Finance Corporation (HBFC), Faisalabad Electric Supply Company, Islamabad Electric Supply Company and Gujranwala Electric Supply company will be privatisaed.

Later, the LESCO, MEPCO, PESCO, HESCO, SEPCO, HESCO, Utility Stores Corporation, State Life Insurance Corporation and Pakistan re-Insurance Company will be privaitsed, the sources said.