Amid closure report, minister says utility stores 'being restructured'

• Federal minister stresses need to bring reforms for utility stores.
• Some USC employees benefitting from subsidy, says Tanveer.
• Govt’s move prompted strong criticism and protests.
  

LAHORE: Following the government’s plan to shut down utility stores across the country, Minister for Industries and Production Rana Tanveer Hussain on Saturday said that they were being restructured to benefit the public in a more effective manner.

As part of the rightsizing of federal ministries and institutions, the government is considering to shut down utilities stories, Secretary of Industry and Production had said on Friday.

During Senate Standing Committee meeting, Senator Saifullah Niazi questioned whether the government is planning to close utility stores in the country.

Secretary Saif Anjum confirmed the development and said work was underway to transfer the employees of the utility stores to other departments.

"The government wants to get out from unnecessary businesses," the official said, claiming that providing subsidy to the utility stores is detrimental to competition in market.

Speaking to journalists today, Rana Tanveer clarified that the government was restructuring the utility store to pass the benefits of subsidy on to the people in a transparent manner.

“We are improving this system as there were complaints that the benefits of the subsidy are not reaching the right people fully,” he said.

The minister noted that some employees and officers of the Utility Stores Corporation (USC) were benefitting from the subsidy, stressing the need to being reforms.

According to utility stores management, the government has provided them with a two-week deadline to wrap up issues with companies while the Rs50 billion subsidy, which previously offered significant relief to around 26 million deserving households, has been halted.

The utility stores management said over 11,000 employees, which including 6,000 permanent staff, are worried over the potential closure.

Speaking to Geo News, Atif Shah — General Secretary of All Pakistan Workers Alliance — had said that the USC wasn't a burden on national exchequer.

"The government collects Rs120 billion in taxes annually from companies in form of groceries sale," he said, noting that Rs25 billion was being paid by USC which according to him makes 18% of the total amount.

Furthermore, Shah said they don't take funds from the government and salaries of all employees are "self-generated". He claimed that the government owes Rs20 billion to the corporation.