The federal government has assured the protesters that the Utility Store Corporation would not be shut down as both sides had “successful negotiations,” sources said on Monday.

Federal Minister for Industries and Production Rana Tanveer stated that the government would not take any unilateral actions. USC MD Ali Amir confirmed that it has been communicated that “no poor individuals will be made unemployed.”

Sources added that the government has committed to not closing the USC and has accepted the demand to maintain the subsidy for the stores.

Previously, a delegation from the USC met with Tanveer. He reiterated that various options for restructuring the corporation are being explored and a new mechanism for subsidies was being clarified to ensure transparency.

The protest by USC employees in Islamabad entered its second week on Monday, with workers from all three unions participating. The demonstration, which began last week, is a response to the federal government’s decision to shut down the Utility Stores Corporation.

Protesters have vowed to continue their sit-in until their demands are met.

The decision to close the Utility Stores was made on August 16 during a meeting chaired by the Prime Minister. The government decided to abolish 28 departments across five ministries in an effort to reduce administrative costs and streamline the state machinery.

Following this decision, the federal government also terminated the Utility Stores Corporation, ending a Rs50 billion subsidy for the stores.

Federal Minister for Industry and Production Rana Tanveer Hussain stated that the restructuring of the Utility Stores is aimed at simplifying the tax system and benefiting the public while restoring investor confidence.

He also highlighted concerns about the effectiveness of the subsidy program, stating that it was not reaching its intended beneficiaries due to the involvement of certain employees and officials.

The minister emphasized the government’s commitment to ensuring that the subsidy reaches those who truly deserve it.