The federal government has decided to shut down Utility Stores across the country, as confirmed by the Secretary of the Ministry of Industries and Production during a Senate Standing Committee meeting on Friday The Secretary explained that this decision is part of the government’s broader strategy to withdraw from non-essential business activities, with ongoing efforts to reassign affected employees to other institutions.
The announcement was made during a Senate Standing Committee on Industry and Production meeting, chaired by Senator Aoun Abbas. The Secretary highlighted that the government is focusing on streamlining its operations by discontinuing activities considered non-essential.
Read more: The government has ended subsidies on essential items at utility stores
According to Utility Store management, the federal government has provided a two-week notice, and subsidies on store items have already been discontinued. The news of the closure has caused concern among more than 11,000 employees, including 6,000 permanent staff, with the rest on contract or daily wages.
Meanwhile, the standing committee expressed serious concerns about the decision to close Utility Stores, demanding further details from the Secretary of Industries. Committee Chairman Senator Aoun Abbas Bappi voiced his dismay, noting that he was unaware of the closure decision. He criticized the government’s lack of planning for the future of the thousands of employees who would be affected, questioning how they would be reassigned or if they would face unemployment.
The meeting also included a briefing from the Engineering Development Board on the electric vehicle policy. The board reported that local car manufacturers have failed to meet their vehicle export targets, primarily due to the lack of local auto parts production, which has hindered their export capabilities. In response, the committee chairman suggested reconsidering the vehicle export targets.
