Federal Government to Privatize Utility Stores Corporation (USC)
The Federal Government has officially confirmed its decision to privatize the Utility Stores Corporation (USC), a government-owned entity that provides subsidized food and essential items to the poor. This announcement marks a shift from previous denials and claims that the government would restructure the USC rather than privatize it.
Privatization Plan for 24 Entities
Federal Minister for Privatization Abdul Aleem Khan confirmed the move in a written response during the question hour, revealing that the USC is now included in the government’s privatization list. According to the Ministry of Privatization, the government plans to privatize a total of 24 entities over the next four fiscal years.
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Loss-Making Organizations First
The government aims to prioritize the privatization of loss-making entities, with the USC among those targeted for sale. This includes several high-profile organizations, such as Pakistan International Airlines (PIA) and various electric supply companies. Other entities on the list include First Women Bank, House Building Finance Corporation (HBFC), and Zarai Taraqiati Bank Limited (ZTBL).
Additional Entities for Privatization
Apart from these, the privatization plan also involves other public-sector organizations like the Pakistan Engineering Company (PECO), Sindh Engineering Limited, and twelve power generation and distribution companies from the energy sector. Additionally, overseas assets, including the Roosevelt Hotel in the United States, are also included in the privatization drive.
Furthermore, state-owned insurance companies such as State Life Insurance Corporation and Pakistan Reinsurance Company Limited are also part of the government’s privatization strategy.
Change in Government’s Approach
This decision to privatize the USC follows a change in the government’s approach, as it had previously insisted that the corporation would undergo restructuring rather than being privatized. The move is part of a broader strategy to address the financial viability of public-sector entities.
