ISLAMABAD (Web Desk – The government has pulled the plug on Utility Stores across Pakistan, announcing a Rs28 billion golden handshake for more than 11,000 employees.
Federal Minister Tariq Fazal Chaudhry told reporters that Prime Minister Shehbaz Sharif approved the package to cushion the blow for staff. Of the total, Rs13.18 billion will go to permanent workers, Rs3.6 billion to contract staff, and Rs2 billion to daily wagers. In addition, Rs19.5 billion has been earmarked to directly benefit employees.
The minister said the institution had become a white elephant, draining Rs600 million every month from the national kitty. Despite “trying tooth and nail” to revive operations, the stores could not stand on their feet. All Utility Stores properties will now be auctioned off.
Impact: The closure of Utility Stores marks the end of a decades-old state-run retail chain that once promised affordable goods to the public. Experts say the move will hit low- and middle-income households hard, as they will lose a subsidized shopping option. On the flip side, the golden handshake may provide short-term relief to employees, but thousands will now be left jobless, adding to unemployment woes.
Economists warn that without a proper replacement mechanism, inflation-hit consumers will be left at the mercy of the open market, where prices are already sky-high. The decision, while easing the burden on government finances, risks widening the gap between rich and poor.
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