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Aftab Maken
ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb on Wednesday chaired a high-level meeting of the committee tasked by the Prime Minister to oversee the closure and privatization of the Utility Stores Corporation (USC). The meeting, held at the Finance Division, focused on ensuring a smooth and transparent wind-up process, formulating a Voluntary Separation Scheme (VSS) for USC employees, and recommending a structured timeline for privatization.
The committee, established under the Prime Minister’s directives, is working towards the complete closure of all USC operations by July 31, 2025. This deadline was reaffirmed during today’s deliberations, highlighting the government’s commitment to expediting the process.
Attendees at the meeting included Special Assistant to the Prime Minister on Industries & Production, Haroon Akhtar Khan, Secretary Establishment Division, Secretary Finance Division, Secretary Industries & Production Division, Managing Director of USC, and other senior officers from the Finance and Revenue Division.
During the session, the committee, under the leadership of the finance minister, reviewed the progress made in line with its assigned tasks. Detailed discussions were held regarding the path forward, particularly concerning the formulation of a fair and financially viable VSS for the employees of USC. The proposed VSS was examined from various angles, including its projected size, potential fiscal impact, and the legal and operational implications associated with its structure and rollout.
A key recommendation from the meeting was to consult the Privatization Commission. This consultation aims to ascertain the optimal structuring and feasibility of either outright privatization or the alternative of asset sales linked with USC operations. This step underscores the committee’s thorough approach to ensuring the best possible outcome for the wind-up process.
To facilitate a comprehensive analysis of the VSS, the finance minister constituted a sub-committee. This sub-committee will be headed by the Secretary Establishment Division and will include representatives from the Finance Division and the Industries & Production Division. Its mandate is to meticulously examine the legal and operational aspects, contours, size, and structure of the proposed VSS. The sub-committee is tasked with submitting its report to the main committee by the end of the week. This timely submission will enable the main committee to consolidate its findings, finalize its report, and present its recommendations to the Prime Minister in accordance with its Terms of Reference.
The government’s decision to wind up the Utility Stores Corporation is part of broader reforms aimed at improving efficiency and reducing the burden on the national exchequer. The USC, a network of retail stores providing essential commodities at subsidized rates, has faced criticism regarding its operational efficiency and financial sustainability. The move towards closure and potential privatization or asset sales signifies a strategic shift in government policy concerning such public sector enterprises.
The focus on a fair and financially viable VSS for USC employees reflects the government’s intention to manage the transition smoothly and address the welfare of the workforce. The detailed deliberations on the VSS’s projected size and fiscal impact highlight the importance of prudent financial management in this exercise. Similarly, examining the legal and operational implications ensures that the scheme is robust and minimizes potential challenges during its implementation.
The involvement of multiple divisions, including Finance, Establishment, and Industries & Production, underscores the comprehensive and coordinated effort required for such a significant undertaking. The presence of the Managing Director of USC also ensures that operational realities and insights from within the corporation are integrated into the decision-making process.
The directive for the sub-committee to report by the end of the week emphasizes the urgency and priority attached to this matter. The Finance Minister’s leadership in chairing this committee reflects the high-level attention and commitment from the government to successfully conclude the winding-up process of USC. The ultimate goal is to present a well-thought-out plan to the Prime Minister, encompassing the closure timeline, the VSS, and the strategy for privatization or asset sales, thereby ensuring a transparent and orderly transition.
