The Ministry of Industries and Production has officially announced the permanent closure of Utility Stores across Pakistan, effective from July 31. A formal notification was issued on Wednesday, confirming the immediate halt of all operations at these government-run retail outlets.
According to the notification, all sales and procurement activities at Utility Stores are to be discontinued starting today. This decision has been made under a directive from the federal government, marking a significant policy shift in the management of subsidized retail operations in the country.
Utility Stores, once considered a vital mechanism for providing essential goods at affordable rates to the public, will no longer function under this model.
The ministry has instructed that all existing stock available at operational Utility Store locations be transferred to designated warehouses. This includes surplus inventory that remains unsold as of the closure date.
Additionally, a transparent process has been mandated for the auctioning of information technology equipment, furniture, and other store assets to ensure fair disposal of government property.
In anticipation of this move, notices had already been issued for the evacuation of rented Utility Store premises. These premises are to be vacated by August 1, ensuring compliance with the government’s closure timeline and avoiding further rental liabilities.
The government has also taken steps to address the human resource implications of this decision. In accordance with instructions issued earlier by Prime Minister Shehbaz Sharif, a Voluntary Separation Scheme (VSS) is to be offered to all employees affected by the shutdown. The VSS aims to provide a financial cushion to workers who are being rendered jobless due to the dissolution of the Utility Stores network.
The permanent closure of Utility Stores marks the end of a decades-old initiative originally designed to provide essential items to the public at subsidized rates.
The move has sparked concern among consumers who depended on these stores for affordable groceries and household items, particularly during times of inflation and economic stress. Further details about the employee compensation plan and asset liquidation process are expected to be released in the coming days.
