Swift sale of USC assets ordered

In response, the Finance Division advised USC to expedite the realisation of proceeds from the disposal of properties and assets, and submit a case for approval of a technical supplementary grant of Rs11.98 billion.

For the sale of USC properties, the ministry has already taken up the matter with the Privatisation Commission in accordance with its mandate under the Privatisation Commission Ordinance, 2000. However, their disposal still awaited the approval of the Privatisation Commission and the Cabinet Committee on Privatisation (CCOP).

The CCOP constituted a committee, headed by the Securities and Exchange Commission of Pakistan, to examine the matter and recommend the future course of action. The Ministry of Industries pointed out that as the process for liquidation of USC assets was still pending, the corporation required immediate funding to discharge its outstanding financial obligations arising from its closure.

The ECC was requested to approve Rs11.329 billion as a technical supplementary grant for USC to meet its immediate financing requirements and facilitate completion of the closure process. The remaining requirement of Rs21.529 billion would be taken up separately with the Finance Division.

During discussions, the ECC expressed its satisfaction over the efforts made by the Ministry of Industries to shut down the utility stores.

It considered a summary titled "Request for Approval of Technical Supplementary Grant and Funding Requirements for Completion of Closure Process of Utility Stores Corporation during financial year 2026-27" and approved the proposal with the directive that the industries secretary, under guidance of the adviser to PM on industries, would ensure a smooth disposal of the immovable property of USC.The ministry briefed the ECC that pursuant to directives of the prime minister and the federal cabinet decision, the operations of USC were closed across Pakistan with effect from July 31, 2025.

The ECC had approved a supplementary grant of Rs30.216 billion to pay off the employees' severance package and other dues, clear the outstanding liabilities of suppliers and meet expenditures pertaining to the continuation of operations till the eventual privatisation of USC.

The decision was subsequently ratified by the federal cabinet. approved by the cabinet, the total funds required for the USC closure were estimated at Rs40.151 billion, of which Rs13.822 billion was projected to be generated through the disposal of USC assets, resulting in a net federal government liability of Rs26.329 billion.

Of this, Rs15 billion had been released during FY2025-26, which was fully utilised. The Ministry of Industries apprised the ECC that USC had implemented the closure plan and achieved significant progress. In that regard, 11,083 employees were laid off and a severance package amounting to Rs8.146 billion was disbursed to 9,119 employees after third-party validation.

In addition, widow compensation worth Rs683 million and house ceiling payment of Rs147 million were also released. A voluntary settlement agreement with the workers' union, vetted by the Ministry of Law, was successfully concluded. Furthermore, during FY2025-26, payments of Rs3.381 billion were made to suppliers after third-party validation.

Also, branded stocks valuing at Rs3.074 billion, out of the total of Rs3.650 billion, were returned to suppliers without additional cost, resulting in an exceptionally high stock return ratio of 85%.

USC also liquidated perishable stocks (rice, pulses, condiments, etc) through an auction and realised net proceeds of Rs214.60 million (excluding taxes) against the projected sale price of Rs208.89 million, and compared to the approved cash flow projection of Rs50 million. Owing to obsolete stock, the USC board approved a total write-off amounting to Rs204.58 million.

Moreover, assets such as steel racks were disposed of through an auction, generating around Rs8.40 million against the target of Rs350 million. The Ministry of Industries had cleared a three-year backlog of statutory audits, updated audited accounts up to FY2024-25 and settled 1,003 internal audit observations.

Owing to the closure of retail operations, workforce rationalisation and reduction in operational expenditures, USC made savings of Rs13 billion. In order to complete the essential residual functions, the USC board, during its 203rd meeting held on June 11, 2026, approved the retention of 326 essential staff till the completion of residual tasks.

For meeting the remaining obligations arising from implementation of the closure plan, the board, in its 205th meeting on August 20, 2026, approved the budgetary requirement of Rs32.858 billion for FY2026-27, covering employee compensation, terminal dues, vendor payments, TCP liability, administrative expenses and other obligations.