Utility Stores Employee Package
The federal government has announced the Utility Stores Employee Package 2025, a special relief plan designed to support employees affected by the restructuring of the Utility Stores Corporation of Pakistan (USC). Valued at Rs25.255 billion, this package will be disbursed in phases and funded through both government allocations and the sale of USC properties. The plan was reviewed by the Senate Standing Committee on Industries and Production under the leadership of Chairman Senator Aun Abbas.
Key Facts Snapshot
- Total Value: Rs25.255 billion
- Immediate Allocation: Rs15 billion
- Disbursement: In three phases till June 2026
- Additional Funding: Through the sale of USC properties nationwide
- Liabilities: USC faces over Rs57 billion in dues, with Rs30.8 billion owed to vendors
Senate Standing Committee Review — Utility Stores Employee Package 2025
During the Senate Standing Committee meeting, senior officials briefed senators on the financial and administrative challenges of USC. The committee reviewed the payment procedures for employees and expressed the importance of timely disbursements. Key senators, including Syed Masroor Ahsan, Mirza Muhammad Afridi, Mohsin Aziz, and others, actively participated in the discussion.
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Why the Utility Stores Employee Package 2025 Was Needed
USC was established in 1971 to provide affordable essential commodities across Pakistan. However, over the years, the corporation incurred heavy losses and often failed to pay employees’ salaries on time. Although USC witnessed profits between 2021 and 2023 due to government subsidies under relief programs like Ehsaas Ration Program, financial sustainability remained a challenge. With liabilities piling up, the package became necessary to safeguard the livelihood of employees.
Who Qualifies — Utility Stores Employee Package 2025
The package has been structured into different categories based on the length of service and status of employees. This ensures fair distribution and prioritizes those who served the organization longer or are in urgent need of support. The aim is to provide maximum relief to all affected employees after the right-sizing of USC.
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Payment Structure & Three-Phase Timeline
A sum of Rs 15 billion will be reallocated for direct employee payments. This amount will be released in three phases up to June 2026. The phased approach allows for smoother disbursement while ensuring that funds are managed responsibly. Employees can expect the first tranche soon after administrative formalities are completed.
Funding the Remainder: Sale of USC Properties 2025
The government plans to raise the remaining amount of the package through the sale of USC properties across the country. These assets will be liquidated to generate funds and cover employee payments. Transparency and accountability will be critical in this process to ensure fair valuation and timely transactions.
Impact on Employees, Vendors & Operations — Utility Stores Employee Package 2025
The package is expected to provide immediate relief to USC employees, helping them achieve financial stability after restructuring. It will also pave the way for addressing vendor payments, as USC owes more than Rs30 billion to suppliers. If managed well, this initiative could restore confidence in USC’s operations and create a pathway toward financial restructuring.
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Oversight, SMEDA Concerns & Follow-Up — Utility Stores Employee Package 2025
Alongside USC, the committee also discussed the Small and Medium Enterprises Development Authority (SMEDA). Senators raised concerns over the sudden de-notification of four board members, allegedly due to poor performance. The Chairman directed SMEDA to present all relevant records, including notifications and audit reports, in the next meeting to ensure proper accountability.
Risks & Open Questions — Utility Stores Employee Package 2025
While the relief plan is a welcome step, several challenges remain:
- Will property sales generate enough funds within the set timeframe?
- Can the government ensure timely disbursements without bureaucratic delays?
- How will vendor liabilities be managed alongside employee payments?
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FAQ — Utility Stores Employee Package 2025
Q: What is the total value of the Utility Stores Employee Package 2025?
A: The package is worth Rs25.255 billion.
Q: How will the payments be made?
A: Rs15 billion will be paid in three phases till June 2026, and the rest will come from the sale of USC properties.
Q: Who will benefit from the package?
A: Affected employees of USC, with payments categorized based on service length and employment status.