Islamabad :- The meeting of Senate Standing Committee on Industries and Production, chaired by Senator Aon Abbas, convened, review the procedure of payments to the employees of Utility Stores Corporation of Pakistan after rightsizing by the Government of Pakistan.
The meeting was attended by Senators Syed Masroor Ahsan, Mirza Muhammad Afridi, Mohsin Aziz (Bill Mover), Saifullah Sarwar Khan Nyazee and Danesh Kumar, Dilawar Khan, Khalida Ateeb and Husna Bano.
The Senate Committee took up a matter of public importance referred by the Senate House regarding the financial and administrative affairs of the Utility Stores Corporation of Pakistan (USC).
The Secretary, Ministry of Industries and Production, briefed the Committee that USC, established in 1971, has been incurring heavy losses in recent years and is unable to pay salaries of employees on time. Despite the closure of operations, the Corporation continues to face liabilities exceeding Rs. 57 billion, of which Rs. 30.8 billion relates to payments owed to vendors.
It was further informed that during the period 2021 to 2023, USC generated substantial profits owing to subsidies extended by the then government on essential commodities to provide relief to the public. Highlighting the reasons for this improved performance, Senator Aon Abbas informed the Committee about the Ehsaas Ration Program, which had facilitated one million deserving women across Pakistan.
The Secretary also apprised members about the proposed Severance Package for USC employees affected by the closure. The package amounts to Rs. 25.255 billion and covers different categories of employees, based on length of service and employment status. Out of this amount, Rs. 15 billion will be re-appropriated and disbursed in three phases until June 2026, while the remaining funds will be generated through the sale of USC properties nationwide. On the recommendation of the Chairman, the authorities assured the Committee of timely disbursement to affected employees.
The Committee was also briefed about the functions of the Small and Medium Enterprises Development Authority (SMEDA). Members expressed concern over the sudden de-notification of four Board Members, which was carried out following a Cabinet decision on account of unsatisfactory performance. The Chairman directed SMEDA to submit all related records, including notification, de-notification, and Cabinet proceedings, in the next meeting.
Additionally, SMEDA was instructed to submit its Audit Report for review by the Committee.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
