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Thousands of employees at Utility Stores Corporation (USC) are facing a financial crisis after the government abruptly halted their salaries, despite ongoing service and a court directive mandating continued payment.
According to insider sources, contractual employees ranging from BPS-01 to BPS-13 have not received their April wages.
This comes after USC’s Lahore Zone issued an internal directive to the Head Office in Islamabad. The letter instructed the immediate suspension of payments under the pretext of an ongoing termination process.
The letter, dated April 2025, cited concerns about potential “recoveries” from store and warehouse in-charges as justification for holding back salaries. The notice warned of possible financial losses to the corporation and suggested withholding salaries until further decisions are made.
However, legal experts say this action violates employment law. The court has ordered USC to continue paying employees until the legality of their termination is resolved.
Despite working throughout April, employees now find themselves unpaid and uncertain about their future. This isn’t the first time USC has shifted the burden of losses onto its workforce. For years, staff have been held personally accountable for discrepancies in stored goods. Many were forced to pay out of pocket under pressure, only to be let go afterward.
The latest salary freeze, however, has deepened the crisis. In March, salaries were released following a court order. However, the April freeze has left many employees jobless, unpaid, and without severance.
This treatment of loyal workers has sparked outrage. There are growing calls for USC to reform its practices or risk permanent closure due to gross mismanagement and disregard for its staff.
