Table of Contents
ISLAMABAD: The abrupt closure of the Utility Stores Corporation (USC) by the federal government has plunged its employees into financial hardship, with salaries for August still unpaid ten days into the month. Workers say the delay is pushing them into severe distress, as many rely solely on their monthly wages to meet household expenses.
The corporation, which was shut down on July 31, had been a vital chain of subsidized retail outlets across Pakistan. Now, its closure has left thousands of employees uncertain about their future and questioning the government’s handling of the matter.
Employees Blame Government’s “Poor Policies” for Losses
Speaking to reporters, Syed Arif Hussain Shah, Secretary General of the Employees Union, directly blamed the government’s “flawed and inconsistent” policies for the financial losses that led to USC’s closure.
He alleged that ministers had made “misleading and factually incorrect” statements in the National Assembly about the state of the corporation. Shah claimed that a special committee led by Rana Sanaullah had failed to deliver on commitments made to the workforce during earlier negotiations.
Allegations of Asset Sell-Off at “Throwaway Prices”
The union leader further accused the authorities of preparing to sell billions of rupees worth of USC’s fixed assets at what he called “throwaway prices.” He suggested that the move was aimed at benefiting private interests at the expense of the public sector.
“This is not just a closure—it’s an attempt to dismantle a public institution and sell its assets under the guise of reform,” Shah said, warning that such actions would be resisted strongly by employees.
Violation of Court Orders and Labor Laws Alleged
Shah argued that the closure of the USC was in contempt of court, pointing to an existing stay order that, according to him, prohibits the government from taking such action without following due process.
FBR Maintains 4% Withholding Tax on IT Services for FY 2025-26
He said shutting down the corporation without observing proper legal procedures amounted to a violation of both the Constitution of Pakistan and the country’s labor laws. “The government has not only ignored the law but also the livelihoods of thousands of families who depend on this institution,” he added.
Accusations of Political Ego at Play
In a strongly worded statement, the union leader accused the government of sacrificing the corporation to “personal political ego” rather than making efforts to reform and revive it.
“This is not about economics—it’s about power and pride,” Shah claimed. “Public institutions cannot be shut down simply to settle political scores.”
Threat of Fresh Protests in Islamabad
Shah vowed to protect employees’ rights “at all costs,” warning that if the government failed to fulfill its promises, workers would have no choice but to stage another sit-in in Islamabad.
He reminded the authorities that earlier protests had been called off only after successful negotiations between the employees’ action committee and government representatives. “We ended our protest in good faith, believing in the government’s assurances, but those assurances have now been broken,” he said.
Earlier Protests and Unfulfilled Agreements
Employees of the USC had previously held a prolonged protest in the federal capital, demanding the reversal of the closure decision and the protection of their jobs.
The sit-in had ended when the government reportedly agreed to meet certain demands, including timely salary payments and consultation on future operational changes. However, workers now allege that none of these commitments have been honored, as operations remain halted and wages unpaid.
Public Reaction and Wider Concerns
The closure of USC has drawn criticism from various quarters, including civil society groups, labor rights activists, and political figures. They argue that the decision undermines an important public service that offered affordable essentials to millions of low-income households.
Economists, however, remain divided. While some agree that USC had been incurring heavy losses due to mismanagement and corruption, others believe it could have been reformed rather than shut down entirely.
Uncertain Future for Thousands of Families
For now, the fate of USC’s employees remains uncertain. Without salaries, many say they are unable to pay rent, school fees, or utility bills. Some have warned that prolonged delays could push them into debt.
“We are not asking for charity—just what is rightfully ours,” one employee told reporters. “We served the corporation for years, and now we are being left to fend for ourselves.”
