Islamabad: The federal government has reportedly decided to permanently shut down all Utility Stores nationwide, with closures set to begin on July 10.
This move will affect more than 5,000 employees, who will be transferred to the surplus pool and offered a Voluntary Separation Scheme (VSS) as part of the closure plan. Officials say the scheme aims to provide an exit option for staff while managing workforce downsizing.
Operations at active Utility Stores are already being phased out, with existing inventory slated for transfer to warehouses, where it will either be returned to suppliers or auctioned off.
The decision to shut down the network of government-subsidized stores, originally set up to provide affordable essential goods to the public, has raised concerns about price stability and access to low-cost items for low-income families.
Critics warn that closing Utility Stores may leave vulnerable segments of the population without a safety net, especially amid ongoing inflation and rising living costs.
Government sources suggest the decision was influenced by financial constraints, ongoing operational inefficiencies, and efforts to restructure subsidies in line with fiscal reform commitments.
Further details about employee compensation, the auction process, and the government’s plans to ensure continued availability of essential goods are expected to be announced in the coming days.
