The government will shut down 1,100 loss-making utility shops.

ISLAMABAD (Channel News) The federal government has chosen to close 1,100 loss-making utility retailers as part of its privatization agenda.

The Senate Standing Committee on Industries and Production, led by Senator Aun Abbas, met to debate the future of the Utility Stores Corporation.

According to the Ministry of Industries and Production, 1,500 out of 2,600 utility retailers will remain open prior to privatization.

Meanwhile, in response to increased sugar prices, the Senate Standing Committee on Industries and Production summoned the Competition Commission and sugar mill owners.

During a meeting chaired by Aun Abbas, the committee requested an investigation into the high sugar costs. Aun Abbas Bappi reported that politically prominent families own 44% of the country’s sugar mills. He questioned why sugar prices had risen despite the government approving the shipment of 700,000 tons this year when there was a glut.

The Managing Director of Utility shops updated the committee, indicating that the privatization of utility shops has been postponed owing to a pending audit, which will now be completed by August 2025.

The initial valuation of utility store properties is Rs 8 billion. There are now 5,000 regular employees and approximately 6,000 contract and daily wage workers, with the latter expected to lose their positions following privatisation.

Officials stated that 800 loss-making utility outlets had already been closed, leaving only 1,500 successful ones in business. The closure of loss-making outlets cut monthly expenditures from Rs 1.02 billion to Rs 520 million.