The federal government has decided to close utility stores across Pakistan due to financial problems, according to Saif Anjum, Secretary of the Ministry of Industry and Production. He informed the Senate Standing Committee about this decision and the proposals to shut down the stores as part of efforts to cut costs.
The decision comes because the government does not have enough money to keep the utility stores running. The committee was told that the government is struggling financially and needs to find ways to save money.
The plan to close the utility stores will first need approval from the cabinet secretary and then from the cabinet itself. Once the plan is approved, a schedule will be created for when the stores will close.
In addition to closing utility stores, the rightsizing committee has suggested shutting down other government entities. This plan will also need cabinet approval.
This move is part of a broader strategy by the government to reduce expenses and manage financial constraints. Previously, the Pakistani government approved a five-year privatization program. This program, decided by the federal cabinet, will happen in three phases.
In the first phase, the privatization will include Pakistan International Airlines (PIA), House Building Finance Corporation (HBFC), Faisalabad Electric Supply Company, Islamabad Electric Supply Company, and Gujranwala Electric Supply Company.
In later phases, other entities like LESCO, MEPCO, PESCO, HESCO, SEPCO, Utility Stores Corporation, State Life Insurance Corporation, and Pakistan Re-Insurance Company will also be privatized.
