The government has decided to close an additional 1,000 utility stores this month, according to officials who briefed the National Assembly’s Standing Committee on Privatisation, chaired by MNA Farooq Sattar.

Officials from the Utility Stores Corporation revealed that so far, 2,237 employees have been dismissed as part of the ongoing downsizing. The committee was informed that financially unsustainable utility stores will be shut down, while stable outlets are being considered for privatisation.

During the briefing, the Managing Director of Utility Stores stated that 1,000 financially weak stores will be closed. He noted that last fiscal year, the government provided Rs38 billion in subsidies, but the Rs60 billion subsidy allocated for the current fiscal year has not yet been disbursed.

The Adviser on Privatisation highlighted that 23 state-owned entities have collectively incurred Rs5.5 trillion in losses over the past decade.

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FBR Chairman informed the committee that providing any further concessions to the utility stores could result in legal challenges against the revenue board. He added that all collected revenue is distributed among the provinces and emphasised that any recommendations from the committee will be presented to the Finance Minister.

Officials from the Ministry of Industries and Production noted that the Utility Stores Corporation has a pending claim of Rs2.6 billion. While FBR officials clarified they have not challenged this claim, the USC officials stated they have already filed an appeal.

Committee Chairman urged that if any legal space exists, necessary relief should be extended to the utility stores. However, the FBR chairman maintained that the matter should be addressed through the proper forum — the Alternative Dispute Resolution Committee (ADRC).