By Muhammad Faisal
A major decision has been made for Utility Stores Corporation employees. The Board of Directors (BoD) of USC has approved a financial package worth around Rs19 billion for over 6,000 staff members.
According to documents obtained by this reporter, the decision came during a recent BoD meeting chaired by Secretary of Industries and Production (MoI&P) Saif Anjum.
Financial Package for Utility Stores Corporation Employees
The documents stated that “the Board approved the severance package and compensatory allowances of USC employees as per ECC’s directions, with a negotiated package valued between Rs16 billion and Rs19.5 billion.” On September 1 this year, around 6,480 employees were laid off.
Each of them has been informed individually about their severance package and terminal dues. Payments will follow a cash flow plan and are subject to the federal government providing the necessary funds.
Eligibility Criteria for Severance and Compensatory Allowances
The Board also accepted the human resource committee’s recommendations on who is eligible for the severance and compensatory package. The criteria for eligibility have been finalized.
Employees who are facing disciplinary actions will not receive the package until their cases are resolved.
Similarly, retirees or staff dismissed before August 31, 2025, will not be included, except for those laid off under the restructuring plan.
Any employee involved in shortages or embezzlement will have deductions made from their package. The value of shortages will be recovered or adjusted against their terminal dues.
Employees currently pursuing cases against USC or its officers in courts or other authorities must withdraw their claims to become eligible for the payments.
Impact of Disciplinary Cases on USC Payments
Some USC staff are serving in other government departments on deputation. The announcement clarified how these employees will be treated:
- If the borrowing department absorbs them, they will not be eligible for the repatriation or severance package and will be considered terminated from USC.
- If their deputation ends, they will be relieved from USC and entitled to the severance package once funds are available from the federal government and they provide a no-objection certificate (NOC) from USC.
Treatment of Deputation Staff in USC Restructuring
Earlier this year, the government decided to close utility stores across the country, affecting 11,406 employees.
History and Nationwide Closure of Utility Stores
Founded in 1971, the Utility Stores Corporation ran a nationwide chain of retail outlets offering essential commodities at prices lower than the open market, making goods more affordable for the public.
Author Profile
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Muhammad Faisal is a journalist based in Islamabad who covers business, railway, and commerce sectors of Pakistan.
His reporting focuses on infrastructure, economic policy, and how national developments impact everyday life.
