Islamabad:
The government has decided to dismiss daily salary employees in public service stores across the country as part of its “rights” policy, sources revealed on Saturday.
This decision, which affects approximately 2,500 to 2,600 workers, was approved earlier by the Board of Directors of Utility Stores Corporation (USC).
According to sources, the employee dismissal directives have already been published by the respective zonal offices, signaling the start of the workforce reduction process.
Releases comply with the wider policy of the government of rationalization of workforce and reduction of expenses.
The decision is part of the restructuring efforts in progress within the USC, which was under financial tension. While officials have cited economic challenges and efficiency problems as well as the cuts, this decision should face the resistance of affected employees and unions.
The USC board of directors had deliberated the case during previous meetings, finally concluding that the reduction in the number of daily wage staff members was necessary to align with budgetary constraints and operational efficiency objectives. Government policy “in matters of rights” aims to rationalize operations in state -managed entities, which has an impact on other sectors in the future.
It is relevant to note that the Federal Minister of Industries and Production, Rana Tanveer Hussain, recently specified that the government did not intend to close the public service stores but will rather restructure it.
Responding to the concerns raised in the National Assembly by the PPP chief, Raja Perviz Ashraf, he assured that stores would continue to operate, although reforms are necessary to improve efficiency.
The Minister noted that public service stores were initially set up to provide affordable essential products, but many have been created in unnecessary places due to political influence. He recognized the cases of political appointments within the organization, which would be dealt with during the restructuring while ensuring that regular employees have remained safe.
It should be noted that there were rumors that the government interrupts subsidies on sugar, wheat and cooking oil.
In December 2024, another proposal was envisaged to close 1,000 USC points of sale nationally. However, another proposal was to restructure the company to improve its financial sustainability.
The government will face the intimidating task of welcoming the 3,800 USC employees. The Minister of Industries and Production has repeatedly said that the government had no intention of closing the USC.
In January, the Economic Coordination Committee approved 1.7 billion rupees to settle the USC’s current liabilities under the Prime Minister’s rescue package. However, no additional budget has been allocated for the next Ramazan succession package.
