- The federal minister stresses the need for reforms in public service institutions.
- Some USC employees benefit from the subsidy, Tanveer says.
- The government's move sparked strong criticism and protests.
LAHORE: Following the government's plan to close down public utility shops across the country, Industries and Production Minister Rana Tanveer Hussain on Saturday said they were being restructured to benefit the public in a more effective manner.
As part of the downsizing of federal ministries and institutions, the government is considering closing public service companies, the Secretary of Industry and Production said on Friday.
During the Senate Standing Committee meeting, Senator Saifullah Niazi questioned whether the government is planning to close down public service shops in the country.
Secretary Saif Anjum confirmed the development and said work was on to transfer employees from public service shops to other departments.
“The government wants to get rid of unnecessary businesses,” the official said, claiming that providing subsidies to utility stores is detrimental to competition in the market.
Speaking to reporters today, Rana Tanveer clarified that the government was restructuring the utility store to transfer the subsidy benefits to the people in a transparent manner.
“We are improving this system because there have been complaints that the benefits of the subsidy are not fully reaching the right people,” he said.
The Minister noted that some employees and officials of Utility Stores Corporation (USC) were benefiting from the subsidy, and stressed the need for reforms.
According to the utility stores management, the government has given them a two-week deadline to resolve the issues with the companies, while the Rs 50 billion subsidy, which earlier offered significant relief to around 26 million deserving households, has been suspended.
Management at the utility store said more than 11,000 employees, including 6,000 permanent staff, are concerned about the potential closure.
Talking with Geo newsAtif Shah, general secretary of the Pakistan Workers Alliance, had said the USC was not a burden on the national exchequer.
“The government collects Rs 120 billion in taxes annually from businesses in the form of grocery sales,” he said, noting that USC was paying Rs 25 billion, which he said was 18% of the total amount.
Shah further claimed that they do not receive any funds from the government and that the salaries of all employees are “self-generated.” He claimed that the government owes Rs 20 billion to the corporation.
