The federal government is considering the nationwide closure of utility stores, a decision that could significantly affect millions of low-income families who depend on these stores for discounted essential items.
This decision comes after the government halted a Rs50 billion subsidy that had provided substantial relief to approximately 26 million deserving households.
During a recent Senate Standing Committee meeting on Industry and Production, the Secretary of Industry confirmed that the government is contemplating the closure of utility stores as part of a right-sizing effort.
Due to financial challenges, the government plans to reallocate funds originally intended for the utility stores subsidy to address the ongoing energy crisis, with a focus on providing relief on electricity bills.
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The subsidy, which had offered up to 25% discounts on essential items such as flour, ghee, rice, sugar, and pulses, has been discontinued. Consequently, these items will now be sold at regular market prices, removing the financial relief previously available to low-income families.
The Secretary of Industry revealed that an action plan for closing the utility stores is being developed, including a package for the employees affected by the closures.
Meanwhile, more than 18,000 utility store employees are contemplating protests against the impending closures.
