The Utility Stores Corporation (USC) of Pakistan has officially closed its operations across the country as of July/August 2025, following government directives. Over 4,000 retail outlets are closing, with sales and purchases halted due to severe financial losses, mounting debt, and the removal of subsidies. 

 

Key Details Regarding the Closure:

  • Effective Date: Operations ceased starting July 31, 2025, with final closure actions proceeding through August.
  • Reason for Closure: Persistent financial losses, with the corporation unable to operate sustainably despite government support.
  • Employee Compensation: A comprehensive severance package worth over PKR 28 billion was approved for over 11,000 employees.
  • Operations: All sales, purchases, and business management software (Odoo) operations have been terminated. 

     

The shutdown marks the end of a state-owned enterprise (SOE) established in 1971 that was originally intended to supply essential goods at subsidized prices to low-income households. 

Source: DAWN