Utility Stores Corporation Delayed Due to This Reason

The Managing Director (MD) of USC informed the committee that USC has been placed on the government’s privatization list.

The process has been delayed due to the absence of a two-year audit, which is expected to be completed by August 2025.

Despite these delays, the initial assessment of USC’s assets has been completed, and the corporation is now part of the second-tier privatization list.

Impact on Employees & Store Closures

The potential privatization of USC raises serious concerns about employee layoffs and store shutdowns:

• USC currently employs:
  • 5,000 regular employees
  • 6,000 contract & daily wage employees
• Job losses:
  • Only 1,500 stores will remain operational post-privatization.

USC’s financial burden has been a major justification for privatization. The committee reviewed recent cost-cutting measures and their impact:

• Previous monthly expenses: Rs. 1.02 billion
• Current monthly expenses: Rs. 520 million (after closing unprofitable stores)
• Monthly loss reduction: Rs. 220 million

While these financial adjustments have helped stabilize losses, the long-term sustainability of USC under privatization remains uncertain.

These factors have led to artificial price inflation, impacting everyday consumers and industries dependent on sugar.

This investigation aims to expose and curb exploitative pricing strategies that burden ordinary citizens.

Senate Investigates Rising Sugar Prices & Industry Manipulation

The committee shifted its focus to Pakistan’s rising sugar prices, expressing frustration over the absence of key government officials, including:

• Special Assistant Haroon Akhtar
• The Secretary of Industries

Senator Aun Abbas raised serious Utility allegations regarding the political influence over sugar mills:

• Despite the government approving the export of 700,000 tons of sugar, domestic prices continue to rise.
• Mill owners allegedly increase sugar prices at the end of the crushing season to manipulate market rates.

To investigate possible price-fixing Utility and monopolistic practices, the committee has:

• Summoned the Competition Commission of Pakistan (CCP) for an official inquiry.
• Ordered sugar mill owners to explain the unjustified price hikes.