ISLAMABAD: Talks between utility stores employees and the government have succeeded. The government has given an assurance that utility stores would not be closed.
Talking to media, employees' leader Raja Maskan said that they made long struggle to get their rights, adding, "Today they had negotiations with Federal Minister Rana Tanveer and he assured them that the utility stores would not be closed.
Raja said that the minister also assured them of granting Rs7 billion Ramadan package, Rs50 billion subsidy and complete cooperation.
He further said that legislation would be made to improve the institution.
Minister for Industries and Production Rana Tanveer Hussain says there are no plans under consideration to shut down the Utility Stores Corporation.
He was talking to a delegation of the Utility Stores Corporation, who called on him in Islamabad today.
Managing Director of Utility Stores Corporation and the Secretary of Industries and Production were also present in the meeting.
Speaking on the occasion, Rana Tanveer Hussain said that various options for the restructuring of the Utility Stores Corporation are being explored. He said to enhance transparency; a new subsidy mechanism is being developed.
Rana Tanveer Hussain emphasized that no unilateral action will be taken by the government to close down the Utility Stores Corporation.
He said all decisions will be made with the consultation of employees and all stakeholders and the interests of all government employees will be protected.
Meanwhile, the protest by Utility Store employees in Islamabad has entered its second week, with workers from all three unions participating. The demonstration, which began last week, is a response to the federal government’s decision to shut down the Utility Stores Corporation.
Earlier in August, it was reported that in a bid to reduce expenses, the federal government is considering the closure of all utility stores nationwide and it was confirmed by the Secretary of Industry and Production.
During a Senate Standing Committee meeting, Senator Saifullah Niazi inquired about the government's plans to shut down these stores. Secretary Saif Anjum confirmed the plan, explaining that the government is working on reallocating utility store employees to other departments.
"The government aims to exit non-essential businesses," the Secretary said, arguing that subsidizing utility stores negatively impacts market competition.
Utility stores management reported that the government has given them a two-week deadline to resolve issues with suppliers. The Rs50 billion subsidy, which previously provided significant relief to around 26 million deserving households, has already been discontinued.
The potential closure has raised concerns among the over 11,000 employees, including 6,000 permanent staff, who now face uncertainty.
Atif Shah, General Secretary of the All Pakistan Workers Alliance, argued that the Utility Stores Corporation (USC) is not a burden on the national budget.
He noted that the government collects Rs120 billion annually in taxes from grocery sales, with USC contributing Rs25 billion, or 18% of the total.
Shah also mentioned that the USC does not receive government funding and that all employee salaries are self-funded. He claimed that the government actually owes the corporation Rs20 billion.
