Government shuts down 1,000 utility stores across Pakistan amid cost-cutting measures

Web Desk | 1 year ago

Islamabad: The Pakistani government has implemented its decision to close down approximately 1,000 utility stores across the country in a bid to reduce government expenditures, leaving many employees concerned about their future. The closures, which have sparked protests and unrest among workers, are part of broader efforts to streamline operations and cut costs.

While employees had hoped that their protests and a sit-in held in Islamabad would lead to a reversal of the decision, the government has pressed ahead with its plan. The closure primarily affects utility stores in rural areas, with many of them facing financial difficulties due to low income and high losses.

Despite the store closures, the government has assured that no employees will be laid off, stating that those working at the closed stores will be reassigned. Sources revealed that the closures targeted stores that were running at a loss, while others with better financial performance may remain operational.

The decision follows the federal government’s move earlier this year to end subsidies on basic commodities like sugar, flour, and ghee, which were being provided through utility stores. In August 2024, the government, under the leadership of Prime Minister Shehbaz Sharif, decided to cut subsidies and reduce administrative costs by closing down several departments, including the Utility Stores Corporation.

The move is part of a broader austerity plan aimed at addressing the country’s financial challenges. The government’s cost-cutting measures have drawn mixed reactions.