Islamabad, July 31, 2025: The Government of Pakistan on Thursday officially announced the closure of all utility stores across the country, effectively dismantling a subsidised retail system that had served citizens for over five decades.
According to a notification issued by the Ministry of Industries and Production, operations of the state-run Utility Stores Corporation (USC) have ceased with immediate effect from July 31.
“All sales and purchases at utility stores have been closed with effect from July 31, 2025, except for the transfer of remaining stock to warehouses or return to vendors, and completion of inventory handover procedures,” the notification stated.
The decision marks the end of a retail network originally established in July 1971, which expanded over the years to include nearly 4,000 outlets aimed at providing essential commodities to low-income communities at subsidised prices.
The move comes despite widespread protests by USC employees, who last week staged a sit-in in Islamabad, chanting slogans against the government’s shutdown plans and warning of dire economic consequences. “Shutting down utility stores would be like handing over 260 million citizens to the mafias of inflation,” one protester had said. Workers had also cautioned that the closure would worsen inflation and render thousands of employees jobless.
Concerns about the future of the USC first surfaced in August 2024, when then-Chairman of the Senate Standing Committee on Industries and Production, Senator Aon Abbas, revealed that the government was considering a complete shutdown. He noted that approximately 7,000 employees would lose their jobs, and the government had not confirmed whether severance packages or alternative employment would be offered.
However, in September 2024, the then Minister for Industries and Production, Rana Tanveer Hussain, denied any such plans, stating that the government was exploring restructuring options to enhance USC’s efficiency and transparency.
Established by taking over 20 retail outlets from the Staff Welfare Organisation, the USC’s mission was to support the poorer segments of society by offering essential goods at reduced prices in a dignified shopping environment. Its closure signals a significant policy shift and raises concerns about inflation, food security, and social welfare protections.
As of now, no official word has been given on alternate mechanisms to support vulnerable populations previously served by the USC.
