The government has approved more than Rs11.3 billion to support the closure of Utility Stores Corporation. The funding could help settle outstanding employee-related liabilities.
The Economic Coordination Committee approved Rs11.329 billion for USC’s immediate funding requirements. The allocation will also facilitate completion of the corporation’s closure process.
The decision comes after employees faced delays in receiving salaries, severance payments and other financial benefits during the closure process.
Why Was the Rs11.3 Billion Approved?
The approved amount will provide financial support for completing the Utility Stores Corporation’s closure. It will also help address immediate funding requirements linked to the process.
The government has been working through the corporation’s outstanding liabilities following its decision to wind up USC. Therefore, employee payments remain an important part of the broader closure process.
In September 2026, the Finance Ministry said significant progress had been made on employee payments. It also reported progress in settling verified liabilities connected with the corporation’s closure.
USC Employees Faced Payment Delays
Thousands of USC employees experienced delays in receiving their financial dues during the closure process. These included salaries, severance payments and other benefits owed to workers.
More than 7,000 employees were dismissed in September 2025. Meanwhile, thousands of other workers had already lost their jobs earlier during the restructuring process.
The delays created financial difficulties for affected employees. Consequently, workers also staged protests and demanded the immediate settlement of their unpaid salaries and other dues.
Government Moves Ahead With USC Closure
The latest funding forms part of the wider process to complete the closure of Utility Stores Corporation. The government had previously approved a financial package for this purpose.
That package covered employee severance, terminal benefits, salaries and other liabilities. The latest ECC approval therefore provides additional financial support as authorities move toward completing the process.
The Ministry of Industries and Production has also been reviewing measures linked to the corporation’s closure. Recent government discussions have focused on expediting the process and addressing outstanding matters.
What Happens to the Workers’ Outstanding Dues?
The latest approval provides funding for USC’s immediate requirements and its closure process. Meanwhile, the government has already reported progress in paying employees and settling verified liabilities.
However, the approval does not mean every outstanding payment has already been transferred to every affected worker. Payments and liabilities still need to move through the relevant verification and settlement procedures.
For employees who have been waiting for their financial dues, the latest ECC decision represents a further step toward resolving the liabilities linked to USC’s closure. The process will now continue as the government completes the remaining financial and administrative requirements.
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