Islamabad: In a major restructuring move linked to fiscal reform demands by the International Monetary Fund (IMF), Pakistan has begun implementing staff reductions and large-scale closures at the Utility Stores Corporation (USC), official sources confirmed.
According to an ARY News report citing government documents, the reform process has already resulted in the termination of 2,237 daily-wage workers during the first phase. A second phase is now underway, which will see around 2,800 contract employees from grades 1 to 13 dismissed by June 30. Employees in higher grades—14 and above—are to be transferred to the government’s surplus pool.
In parallel, the government has decided to shut down 1,000 underperforming utility stores by the end of the current fiscal year. These closures will bring down the total number of operational USC outlets from 5,500 to 1,500. Daily-wage workers at the affected stores will also lose their jobs as part of the downsizing strategy.
The remaining stores are expected to be privatised, according to official documents. The move is part of the broader IMF-supported right-sizing initiative designed to reduce fiscal burden and enhance efficiency in public sector entities.
The Utility Stores Corporation had received Rs38 billion in subsidies last year. However, sources indicate that the Rs60 billion earmarked for the current fiscal year remains undisbursed.
These developments come just ahead of an IMF Executive Board meeting scheduled for May 9, where a $1.1 billion disbursement under the Extended Fund Facility (EFF) is expected to be approved. The meeting will also consider a new $1.3 billion Resilience and Sustainability Facility (RSF) arrangement aimed at supporting climate-related initiatives.
The IMF’s conditions reflect its continued push for structural reforms across Pakistan’s public sector, particularly in loss-making state-owned enterprises.
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