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The Prime Minister Shehbaz Sharif-led federal government has finalized plans to shut down the Utility Stores Corporation (USC), the country’s public retail network, by July 10, 2025.
This decision is expected to impact a significant number of employees, all of whom will be eligible for the Voluntary Separation Scheme (VSS) approved by the Prime Minister.
The closure decision was reinforced during a high-level meeting held on June 30 at the USC headquarters in Islamabad. The meeting was chaired by the USC managing director and attended by senior officials, including the Joint Secretary of the Ministry of Industries and Production, along with multiple general managers.
The minutes confirmed that “all utility stores will cease operations by July 2, 2025.” A final call on discontinuing the inventory software system “Oddo” will be made after July 1.
Despite the closure, a small team of essential staff will remain temporarily to manage post-shutdown affairs. The USC has directed all zonal and regional managers to supervise the closure activities. Stock from all stores will be moved to warehouses or returned to vendors under strict supervision.
In addition to stock management, IT equipment, racks, and fixtures will be reclaimed from all store locations, including the USC headquarters and zonal offices. Notices have been planned to vacate the rented store premises by August 1, 2025. To ensure smooth execution, a dedicated closure operations department will be formed to oversee the entire shutdown process.
Background
This move follows the federal cabinet’s announcement in January 2025 to stop the state-run retail chain’s operations. Moreover, it marks a major change in Pakistan’s public retail sector.
The closure of USC stores aims to make government operations more efficient. However, it raises concerns about the effect on employees and consumers who depend on these stores for affordable goods.
