The Cabinet Economic Coordination Committee (ECC) approved a complementary technical subsidy of RS30.216 billion on Thursday to guarantee the closure without problems of the Public Service Store Corporation (USC) of Pakistan.
Established in 1971, USC was a state company responsible for supplying essential products to subsidized rates, mainly pointing to low -income households, and operated more than 4,000 retail points throughout the country. Formally stopped operating at the end of July.
A press release from the Government’s Finance Division said today that the subsidy represented an “important step to address the long financial burden of USC in the National Treasury,” he added that he also safeguard the interests of employees affected by the closure.
“By approving compensation, compensation and payment of pending quotas, the Government ensures that workers receive their rights, thus shocking the social and economic impact of USC liquidation,” said the press release.
The Committee was chaired by the Minister of Finance, Senator Muhammad Aurangzeb.
The Minister of Food Security, Rana Tanveer Hussain, Commerce Minister, Jam Kamal Khan, the Minister of Energy, Sardar Awais Ahmad Khan Leghari, in virtual assistance, and the special assistant of the Prime Minister of Industries and Production, Haroon Akhtar Khan, as well as Federal Secretary and senior officials of ministers of incoative, departments and regulatory institutions.
According to the statement, the ECC decided that the Ministry of Industries and Production would further rationalize the financial requirements for the closure of the USC.
“It was also decided that USC assets, including properties, will be eliminated within the current financial year so that closure costs are partially met through the income of the sale,” he added.
The body of the cabinet also stressed the importance of carrying out the closure of an “orderly and transparent way”, including partially fulfilled responsibilities through the elimination of USC properties.
“The approved financial package underlines the government’s commitment to protect the well -being of employees while guaranteeing fiscal discipline in the liquidation of USC operations,” he said.
Earlier this week, the National Committee for the Privatization of the Privatization Assembly that the Government would guarantee the payment of RS27 billion in installments to employees and suppliers of USC in two phases after its closure, which put 11,000 jobs on the line, was informed.
Last week, the Public Accounts Committee urged the Government to strengthen the management and controls of the USC instead of closing it, warning that such a measure would leave thousands unemployed.
