1,700 Utility Stores to close, thousands of jobs lost

Thousands of employees will lose their jobs as the government plans to close 1,700 Utility Stores Corporation (USC) outlets. This decision is part of a broader privatization effort. The USC, which is state-run, has debts of around Rs14 billion and employs over 11,000 workers. During a recent meeting, USC officials reported that 5,000 regular employees would be moved to a surplus pool. Unfortunately, 6,000 contract and daily-wage workers will not receive severance pay due to the store closures. The privatization of USC is currently on hold while a two-year audit is underway, expected to finish by August 2025. USC's properties have been valued at approximately Rs8.3 billion according to estimates from 2020 and 2021. However, this is overshadowed by the corporation's significant liabilities. Senator Aoun Abbas, who led the meeting, urged the Ministry of Industries to prioritize transparency regarding employee layoffs. Employees are becoming increasingly anxious about their futures. The Senate committee also discussed rising sugar prices despite allowing large exports this year. Senator Abbas pointed out that many sugar mills are owned by political families, raising concerns about price manipulation following the crushing season. The role of the Sugar Advisory Board, which oversees sugar policies but does not set retail prices, was also questioned. Frustration grew during the meeting due to the absence of the Industries Secretary, prompting warnings for future attendance. The session involved several senators and key officials, aiming to address these urgent issues.