The federal government has decided to close all Utility Stores across Pakistan within the next two weeks. This move ends the decades-long operation of the Utility Stores Corporation (USC), which aimed to provide subsidized goods to the public.
Officials from the Ministry of Industries and Production confirmed the decision. They cited major losses, poor management, and overlap with programs like BISP and Ehsaas. The government plans to replace USC with a digital subsidy model.
The USC currently runs over 4,000 outlets nationwide. These stores have struggled due to weak inventory control, rising costs, and limited transparency. Despite receiving billions in subsidies, the system failed to offer consistent public relief.
Authorities plan to offer golden handshakes to USC employees or shift them to other departments. A formal notice is expected within days. The remaining stock will be sold at discounted prices before closing.
Officials believe digital subsidies will improve access to relief. People will receive funds directly through ID-linked wallets, cutting out middlemen and fraud.
This change is part of wider reforms under IMF recommendations. The Fund has urged Pakistan to cut costs and shut loss-making state entities.
Public opinion is divided. Some welcome the shift to modern systems. Others worry about losing access to cheap items, especially in remote areas.
While the decision is financially sound, it has sparked debate among citizens. Some worry about reduced access to affordable goods, particularly in rural and underdeveloped areas.
Others support the change, saying it’s time for the government to adopt modern systems that ensure direct support and reduce inefficiencies.
The Utility Stores closure represents a major shift in Pakistan’s welfare policy.
Instead of relying on traditional subsidy outlets, the focus will now turn to technology-driven solutions aimed at delivering relief more efficiently and transparently.
