Utility Stores Employee Package 2025: Senate Reviews Rs25.25bn Relief Plan. The Utility Stores Employee Package 2025 has been announced as a major financial relief initiative by the Government of Pakistan to protect the rights and livelihoods of employees affected by the restructuring of the Utility Stores Corporation (USC).
This Rs25.25 billion plan, currently under review by the Senate Standing Committee on Industries and Production, aims to ensure timely compensation, transparency, and financial stability for thousands of USC workers impacted by right-sizing.
Understanding the Utility Stores Employee Package 2025
Aims of the Relief Plan
The Utility Stores Employee Package 2025 seeks to:
- Compensate employees affected by USC restructuring.
- Clear pending salaries and dues.
- Reduce USC’s long-standing liabilities.
- Promote transparency through Senate-supervised disbursements.
This package also aligns with the government’s broader agenda to streamline public enterprises while ensuring social protection for workers.
Key Highlights of the Relief Package
| Category | Details |
|---|---|
| Total Value | Rs 25.255 billion |
| Immediate Allocation | Rs 15 billion |
| Disbursement Timeline | 3 phases till June 2026 |
| Funding Source | Government allocations + sale of USC properties |
| Outstanding Liabilities | Rs 57 billion (Rs 30.8 billion owed to vendors) |
| Supervising Body | Senate Standing Committee on Industries & Production |
| Key Chairman | Senator Aun Abbas |
Senate Standing Committee Review
During a recent session chaired by Senator Aun Abbas, the Senate Standing Committee reviewed the Utility Stores Employee Package 2025 and discussed implementation procedures.
Officials from the Ministry of Industries and Production briefed senators on USC’s financial difficulties and staffing challenges.
Prominent members Syed Masroor Ahsan, Mirza Muhammad Afridi, Mohsin Aziz, and others — emphasized transparent and prompt employee payments.
The committee reaffirmed that the restructuring should not harm workers who served for decades and directed ministries to prioritize employee compensation before vendor settlements.
Why Was the Package Needed?
USC was founded in 1971 to supply affordable essentials nationwide. Over decades, it became a crucial link between government subsidies and public affordability.
However, recurring mismanagement, rising operational costs, and delayed subsidies left the corporation financially unstable.
Between 2021 and 2023, relief programs like Ehsaas Ration Program and Ramadan Subsidy Schemes temporarily improved USC’s profits, but the structure remained unsustainable.
When liabilities crossed Rs 57 billion, the government opted for rightsizing, creating an urgent need for this employee relief package.
Who Qualifies for the Utility Stores Employee Package 2025
The relief plan covers employees across multiple service categories.
Eligibility is based on tenure, employment status, and redundancy impact.
Key groups include:
- Permanent USC employees affected by restructuring.
- Contractual and daily-wage staff with verified service history.
- Retired or terminated workers awaiting pending dues.
- Employees with more than 10 years of service receive priority payments.
Note: Verification will be handled by USC’s HR division in coordination with the Finance Division and Establishment Division to ensure fair distribution.
Payment Structure & Three-Phase Timeline
The government approved Rs 15 billion for immediate disbursement, to be released in three phases until June 2026.
This phased model ensures smooth cash flow and accountability.
| Phase | Timeline | Focus Area |
|---|---|---|
| Phase 1 | Early 2025 | Settlement of verified pending salaries |
| Phase 2 | Late 2025 | Compensation for retired and rightsized staff |
| Phase 3 | Up to June 2026 | Final clearances + property-linked funding |
Funds will be transferred directly into employees’ verified bank accounts through NADRA-linked payment systems, minimizing the risk of mismanagement.
Funding the Remaining Rs 10 Billion: Sale of USC Properties
The Ministry of Industries confirmed that the remaining funds will be raised via the sale of USC’s underutilized assets nationwide.
These include regional warehouses, offices, and land plots no longer in operational use.
Ensuring Transparency
- Independent valuation teams from the Finance Division and Auditor General’s Office will oversee pricing.
- Proceeds will be deposited into a dedicated escrow account exclusively for employee disbursements.
- Senate subcommittees will monitor progress through quarterly reports.
This mechanism ensures zero diversion of funds and builds public trust in the process.
Impact on Employees, Vendors, and USC Operations
The Utility Stores Employee Package 2025 aims to deliver broad-based impact:
1. Employee Relief
Immediate financial support will stabilize thousands of families affected by layoffs or delays in salaries.
2. Vendor Confidence
USC owes over Rs 30 billion to suppliers; successful implementation of this package may pave the way for clearing vendor dues.
3. Institutional Restructuring
By resolving liabilities, USC can focus on digital transformation, improved supply chain management, and cost-efficient operations for future sustainability.
Broader Economic & Social Significance
Pakistan’s retail subsidy network relies heavily on Utility Stores.
The Senate’s oversight ensures that downsizing reforms do not erode social-welfare goals.
- Economic Rebalancing: Funds will reduce fiscal pressure and promote efficiency.
- Job Protection: Retrenched workers receive financial cushioning.
- Accountability Reform: Sets precedent for responsible corporate downsizing in public enterprises.
In essence, the Utility Stores Employee Package 2025 symbolizes a balance between financial discipline and social justice.
Oversight, SMEDA Discussion, and Next Steps
The committee also examined issues in the Small & Medium Enterprises Development Authority (SMEDA).
Concerns arose over the de-notification of four board members for underperformance.
The Chairman Senator Aun Abbas directed SMEDA to present all related audit reports and appointment records in the next review.
This indicates the Senate’s growing focus on governance reforms across all industrial institutions — ensuring efficiency, transparency, and worker protection.
Challenges and Open Questions
While the relief plan is promising, several operational challenges remain:
- Will property sales conclude fast enough to fund later phases?
- Can disbursement occur without bureaucratic bottlenecks?
- How will vendor dues be balanced alongside employee payments?
- What monitoring system ensures that funds reach the correct beneficiaries?
Addressing these will determine whether the Utility Stores Employee Package 2025 truly becomes a sustainable welfare model.
Public and Employee Reactions
Early reactions have been mixed.
Many employees welcomed the Senate’s involvement, citing it as “the first genuine hope in years.”
However, union representatives have demanded written guarantees for payment schedules.
Analysts note that transparent reporting through the Finance Division’s portal could strengthen credibility and public confidence.
Government’s Broader Reform Vision for 2025
The package fits within Pakistan’s wider economic recovery plan focusing on:
- Public-sector restructuring
- Digital payment transparency
- Fiscal accountability
- Employment protection measures
As seen in similar efforts with Pakistan Steel Mills and PIA, the government seeks to reduce losses while protecting livelihoods through transitional support packages.
FAQs
1. What is the Utility Stores Employee Package 2025?
It’s a Rs25.25 billion relief initiative by the federal government to support employees affected by USC’s restructuring and right-sizing process.
2. Who will benefit from the package?
Both permanent and contractual USC employees, including retirees and families of deceased staff, are eligible for compensation.
3. How will the payments be disbursed?
Payments will be released in three phases until June 2026, starting with immediate employee relief and ending with vendor settlements.
4. What is the funding source for the package?
The government will fund Rs15 billion directly, while the remaining amount will be raised through the sale of USC properties.
5. What challenges does USC still face?
USC continues to face liabilities of Rs57 billion, outdated systems, and operational inefficiencies that must be resolved for long-term recovery.
Conclusion
The Utility Stores Employee Package 2025 symbolizes a balanced approach to corporate reform — ensuring employee protection while pursuing financial discipline.
If executed transparently, it could restore faith in Pakistan’s public sector and provide a model for future government-led restructurings.
